Germany seeking new partners in Asia<\/p>\n
The following article is based on a report from a visit to
\nGermany by 11 Asian journalists including one from The Jakarta
\nPost.<\/p>\n
By Oei Eng Goan<\/p>\n
HAMBURG, Germany (JP): Although markets of preference for most
\nGerman enterprises are member countries of the European Union,
\nGerman companies could not but turn their keen eyes on the huge
\npotential and business opportunities Asia offers.<\/p>\n
More than 10 percent of total German exports are absorbed by
\nAsian countries, and the Bonn government has put greater emphasis
\non the growing importance of countries in this most populous
\ncontinent since it adopted a new policy on Asia in early 1994.<\/p>\n
\"As an export-dependent nation, we must be involved in Asia's
\ndynamic markets through trade and investments. Economic rivalry
\nwith Asia and our response to the region's economic power and
\nsuccess are a major test for our business community's ability and
\nfor government policy,\" Chancellor Helmut Kohl said in 1993 after
\nvisiting India, Singapore, Indonesia, Japan and South Korea.<\/p>\n
Kohl's visit was followed by a conference of German
\nambassadors stationed in the Asia-Pacific region in 1994. The
\nconference, held in Bonn and concluded with a 10-point \"Concept
\non Asia\", aims at forging closer ties in all spheres with Asian
\ncountries, particularly with the seven-member countries of the
\nAssociation of Southeast Asian Nations (ASEAN).<\/p>\n
And the new policy bore fruit.<\/p>\n
\"For the first time, in 1994, Germany enjoyed a small surplus
\nof around DM 328 million in its trade with ASEAN,\" an official of
\nthe Federal Ministry of Economics told The Jakarta Post last
\nmonth.<\/p>\n
Data from the ministry shows that German exports to ASEAN
\ncountries last year totaled DM 20.56 billion (US$13.90 billion)
\nagainst imports of DM 17.18 billion, giving Germany a surplus of
\nDM 3.38 billion, 10 times greater than it was in 1994.<\/p>\n
Excluding ASEAN, Germany's total exports to Asia last year
\nincreased by 8.4 percent to DM 57.50 billion from 53.06 billion
\nin 1994. Its Asian imports also increased to DM 76 billion in
\n1995 from 73.30 billion the year before.<\/p>\n
Obviously, the German business community has responded deftly
\nto Kohl's challenges. Germany's enthusiasm for Asian markets and
\ntrade partners, however, have upset other countries outside Asia.<\/p>\n
\"We are blamed, from time to time, by Africa and Latin America
\nthat we do not concentrate that much (on their regions) as we do
\non the Asia-Pacific region,\" Jurgen Staks, head of the Federal
\nForeign Office's Southeast Asia office, told the Post last month.<\/p>\n
As a result of their aggressive business campaign, a number of
\nGerman enterprises have won major contracts in Asia as well as
\nfound partners for joint ventures.<\/p>\n
Reimelt, an engineering and construction company, has built
\npart of the Mayora plant, an Indonesian biscuit factory in
\nTangerang, some 25 kilometers west of Jakarta. A privately-owned
\nenterprise, Reimelt also supplies spare parts and flour silos for
\nfood processing plants worldwide.<\/p>\n
According to Reimelt's marketing executive, Gunter Holle, the
\ncompany is also negotiating with Indofood, a large corporation
\nowned by Indonesian business tycoon Sudono Salim, for the
\nconstruction of an integrated food processing plant in Indonesia.<\/p>\n
Jakarta, meanwhile, has accorded a contract worth more than DM
\n500 million to Germany's Siemens to build a telecommunications
\nnetwork in eastern Indonesia, according to the latest news
\nreport.<\/p>\n
Apart from this, Germany's integrated transportation company,
\nADtranz, which was set up in January of this year after a merger
\nbetween AEG and ABB Daimler-Benz, will supply an automated light-
\nrail system to Singapore and Malaysia, electric locomotives to
\nIndia, and has established its first joint venture in China where
\nsome 8,100 kilometers of new track will be built up to the year
\n2000.<\/p>\n
Behind this success story, however, the Bonn government also
\nseeks and encourages foreign investors to join its ventures in
\ndeveloping eastern Germany.<\/p>\n
As Chancellor Kohl put it: \"Investments should not be heading
\nonly in one direction. It is important that we, in turn, present
\nGermany -- especially in the new federal states -- to Asia as an
\ninvestment location of the future.\"<\/p>\n
For six years now, since the unification between West and East
\nGermany in October 1990, the federal government has transferred
\nDM 150 billion annually to help recover the economy of former
\nStalinist-style German Democratic Republic. Unemployment,
\nfollowing the closures of many east German industries, is another
\nproblem that has to be coped with.<\/p>\n
Although widely known for its high labor costs, Germany's
\nreputed infrastructure, efficient traffic network and strategic
\nlocation still offers a competitive edge to foreign investors.<\/p>\n
\"Several Japanese computer manufacturing firms have started
\ninvesting in Thuringia,\" said Walter Link, the state secretary of
\nThuringia Lander, the fastest growing region of all five German
\nnew federal states which is home to Opel car producer and Zeiss
\noptics industry.<\/p>\n
To help boost business activities in eastern Germany, the
\nGerman government has also built a DM 1.33 billion trade
\nexhibition center in Leipzig, a former German Democratic Republic
\ncity. The imposing glass and steel structure of the exhibition
\nhall, built on an area of 20,500 square meters, was opened only
\nlast April.<\/p>\n
All this, evidently, is only part of Germany's drive to lure
\nmore and more investors to the country whose \"Made in Germany\"
\nhigh-quality products have been known worldwide.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/germany-seeking-new-partners-in-asia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}