China unsure about RI's business climate<\/p>\n
JAKARTA (JP): Chinese businessmen consider that Indonesia's
\ntrade and investment regulations have not been promoted well
\nenough, making them unsure about the country's business climate.<\/p>\n
Chen Yu, chief editor of the leading China International
\nMerchant magazine, said promotion was an important aspect which
\nIndonesia must not disregard, because the country possessed a
\nwealth of attractive business opportunities.<\/p>\n
\"Indonesia has many commodities that the Chinese are
\ninterested in such as plywood, pulp and rubber,\" Chen, as quoted
\nby Antara, said in Beijing.<\/p>\n
Chen added that apart from its commodities, Indonesia was also
\na potential market for Chinese products.<\/p>\n
\"But the problem is that Chinese businessmen don't have a
\nclear picture of Indonesia's existing business world and trade
\nand investment regulations,\" Chen said.<\/p>\n
For this reason, he said, the Indonesian government should try
\nharder to promote its economic policies.<\/p>\n
Chen's suggestion was backed by figures provided by
\nIndonesia's Ambassador to China, Juwana, who said that Indonesian
\nbusinessmen were investing more in China than their Chinese
\ncounterparts were doing in Indonesia.<\/p>\n
Although in China alone, Indonesia's investments during the
\nfirst three quarters of last year reached US$89.42 million --
\nless than the $184 million of Chinese investments in Indonesia --
\nstatistics showed that Indonesians last year invested a total of
\n$3 billion in Hong Kong and China.<\/p>\n
\"In general, the figures are encouraging, because Indonesia
\ngains a surplus over China ... But Hong Kong statistics say that
\nour total investment in Hong Kong and China reaches $3 billion,
\nwhich indicates a deficit on our side,\" Juwana said.<\/p>\n
Juwana asked Chinese businessmen to offset the deficit by
\nincreasing their investments in Indonesia.<\/p>\n
He pointed out that the two countries had their own economic
\nadvantages, which were complementary to each other.<\/p>\n
Chinese businessmen will benefit from investing in Indonesia
\nbecause Indonesia is geographically close to China and because
\nthe two -- being Asian countries -- had many social and cultural
\nsimilarities, Juwana said.<\/p>\n
Increase<\/p>\n
Since Indonesia and China re-opened diplomatic relations in
\n1990, trade between the two has increased from $1.17 billion in
\n1990 to $3.49 billion in 1995. This is less than 2 percent of
\nChina's total international trade volume of $280 billion last
\nyear.<\/p>\n
China presently has an annual economic growth of 12 percent.<\/p>\n
Annual trade growth between China and Indonesia in the last
\nsix years has increased at an average of 13.45 percent.<\/p>\n
According to China's statistics, Indonesia has always enjoyed
\na trade surplus with China during that period. In 1990, the trade
\nsurplus reached $424 million and in 1992, it reached $1.08
\nbillion -- the highest recorded.<\/p>\n
Indonesia's exports to China -- which consist mainly of crude
\noil, wood products, paper, cooking oil, fats and rubber -- have
\nalso been increasing at an average rate of 10.16 percent a year.
\nExports in 1990 were seen at $803.24 million in 1990, but reached
\n$2.05 billion last year.<\/p>\n
Meanwhile, Indonesia's imports from China, which increased at
\nan average of 17.31 percent during the 1990-1995 period, went up
\nfrom $329 million in 1990 to $1.42 billion in 1995. Imports
\ninclude cotton, vegetables and metal.<\/p>\n
In the last five years, imports of zinc and steam boilers
\nalone rose sharply by 125 percent and 394 percent, respectively.
\n(pwn)<\/p>",
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"sponsor": "Okusi Associates",
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