German-Indonesian business, industry ties<\/p>\n
BONN (JP): German business and industry interests in Indonesia
\nas an economic partner have not been diminished by an ongoing
\nfinancial and monetary crisis there and they continue to regard
\nthe nation as an important trading partner and location for
\nGerman investments in the Asian region.<\/p>\n
This was emphasized by the participants at a conference on the
\ncurrent political and economic situation in Indonesia held
\nrecently in Frankfurt. About 200 representatives of Germany's
\ntrade and industry attended the conference. They were joined by a
\nhigh-ranking Indonesian delegation of government officials and
\nbusinesspeople, led by the Minister of Industry and Trade Rahardi
\nRamelan.<\/p>\n
The conference, Indonesia Today, was convened jointly by the
\nCredit Bank for Reconstruction (KfW) in Frankfurt, the Asia-
\nPacific Committee of the German Industry in Cologne and the
\nGerman-Indonesian Forum for Economy and Technology.<\/p>\n
Representatives of German industries and business and
\nindustrial associations reaffirmed their confidence in the
\nIndonesian economy and expressed their readiness to help the
\nnation to overcome its difficulties through investments,
\ntechnology and know-how transfer and promotion of trade.<\/p>\n
Germany was ranked as the 10th largest foreign investor in
\nIndonesia in 1997, with direct investments during the first six
\nmonths of 1998 increasing to DM 131 million from DM 126 million
\nregistered for the whole of 1997.<\/p>\n
Former minister for economics Dr. Guenter Rexrodt, told the
\nconference that the German government expressed confidence in
\nIndonesia's ability to emerge from the crisis in the near future
\nand assured continued assistance to cope with its difficulties.<\/p>\n
As a demonstration of confidence in the Indonesian economy,
\nGermany is sticking to its plans to hold a Technogerma exhibition
\nin Jakarta from March 1 to March 7, 1999. Indonesia is the only
\ncountry where the German industry and technology show will be
\nheld for the second time.<\/p>\n
The German Center for Industry and Trade in Bumi Serpong
\nDamai, near Jakarta, which was recently completed, is expected to
\ngive a further boost to bilateral industrial cooperation and
\ntrade, especially between small and medium-sized enterprises
\n(SMEs).<\/p>\n
The German government holds the view that Indonesia's
\nfinancial crisis should not be seen as a setback, but as an
\nopportunity to implement structural reforms needed for more
\ncompetition and strengthening private initiative, which will
\ncreate the conditions for more investments, new employment
\nopportunities and increased incomes for the population.<\/p>\n
Foreign enterprises will strengthen the international
\ncompetitiveness of the Indonesian economy. It is also very
\nimportant to continue Indonesia's cooperation with the IMF, which
\nwill guarantee international solidarity and support also in the
\nfuture.<\/p>\n
Rahardi told the conference that vast opportunities for German
\ninvestments existed in the area of exploiting Indonesia's natural
\nresources. German companies could also benefit from various
\nincentives given to promote the production and export of a
\nvariety of manufactured goods.<\/p>\n
Dr. Gert Vogt, KfW's Managing Board spokesman, said the
\nfundamental strength and potential of the Indonesian economy are
\nstill there and, therefore, the crisis should be seen as a chance
\nto make a new course toward long-term and sustainable
\ndevelopment. He commended the \"bold steps\" taken by the
\nIndonesian government to lay the foundation for the country's
\neconomic recovery. He expressed the view that the outlook for
\novercoming the crisis in the foreseeable future was very
\npromising if the government continued its reform course. He
\noffered the KfW's continued assistance, together with its
\npartners in Indonesia and in Germany, to accelerate the process
\nof economic recovery.<\/p>\n
So far, the KfW has made available to Indonesia grants and
\ncredits amounting to DM 14.5 billion, out of which DM 10 billion
\nwas given as commercial credits for long-term export and project
\nfinancing and supporting the SMEs, while the remainder was given
\nas grants and soft-term credits within the framework of
\ndevelopment cooperation between the two countries.<\/p>\n
Germany is one of the main trading partners of Indonesia and
\nbilateral trade has been growing rapidly. The total volume of
\nexchange of goods for the first time reached DM 9.28 billion in
\n1997 as Germany's exports to Indonesia went up by 30 percent to
\nDM 5.2 billion, while Germany's imports from that country
\nincreased by 23.8 percent to DM 4.07 million. K.M. Mathew<\/p>",
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"sponsor": "Okusi Associates",
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