EU: Indonesia's main investor and trading partner<\/p>\n
EU: The largest investor in Indonesia<\/p>\n
Mature economic links exist between Indonesia and the European
\nUnion (EU). These deep roots to bilateral economic relations have
\nproven their value during the current economic crisis. In 1998,
\nIndonesia experienced a net outflow\/withdrawal of Foreign Direct
\nInvestment (FDI). Europe, however, was the only part of the world
\nfrom which the flow of FDI into Indonesia remained positive.<\/p>\n
It is not surprising, therefore, that according to Indonesia's
\nInvestment Coordinating Board, the EU is the largest investor
\nsince the board started collecting data in 1967, with a total
\nvalue of approved investment projects up to end-November 1999 of
\nUS$42.9 billion, not including oil and gas and banking sectors
\n(Japan $35.2 billion, the U.S. $10.4 billion). According to Bank
\nIndonesia data, Europe has been responsible for almost half (46
\npercent) of total investments in Indonesia over the period 1995-
\n1998.<\/p>\n
Traditionally, European investments have been directed mainly
\nto the sectors of food, food processing, chemicals, health care
\nand banking, usually with the primary purpose of servicing the
\ndomestic market. In recent years, following liberalization, EU
\ninvestors have become interested in the service sectors,
\nconcentrating on utilities (electricity, gas and water) and
\nlogistics (transportation, storage and communications). Since the
\nmid-1990s, EU companies have also become a major presence in
\nconsultancy and other service industries.<\/p>\n
The hotel and restaurant sector has also received the keen
\nattention of small and medium scale investors from Europe. This
\nis not surprising as more visitors come to Indonesia from the EU
\neach year than from the U.S. and Japan combined. Statistics show
\nthat they also stay the longest and spend the most.<\/p>\n
EU: Indonesian's second largest trading partner<\/p>\n
In the period from 1985 to 1998, the EU's share in Indonesian
\nexports and imports has been steadily growing. As a result, the
\nEU has become the second most important destination of
\nIndonesia's exports (after Japan), and the largest source for
\nIndonesia's imports.<\/p>\n
The deep economic and monetary crisis that struck Indonesia in
\n1997 has had major implications for bilateral trade. As a result,
\nthe trade balance made a drastic swing in favor of Indonesia.<\/p>\n
EU imports from Indonesia are higher now than they were before
\nthe start of the economic crisis, and EU investment in Indonesia
\nhas increased despite the turbulent situation confronting the
\ncountry.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/eu-indonesias-main-investor-and-trading-partner-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}