Italo-Indonesian trade relations<\/p>\n
Indonesia and Italy have enjoyed a long relationship that
\ndates back to many years ago, reinforced by the presence of the
\nItalian Embassy and the Italian Trade Commission (ITC), a
\ngovernment agency whose main purpose is to promote trade between
\nItaly and other countries. The Jakarta ITC opened in 1981 and
\nprovides information and assistance to Indonesian companies
\ninterested in dealing with potential Italian counterparts.<\/p>\n
The ITC represents a major point of reference for small and
\nmedium-sized Italian enterprises (SMEs) and businesspeople
\nseeking trading partners and opportunities.<\/p>\n
The trade balance between Indonesia and Italy had registered a
\nsurplus in favor of Italy, but in 1998 there was a strong
\nrealignment of the flow in favor of Indonesia. After rising
\nsubstantially in 1996, the volume of Indonesian imports from
\nItaly contracted slightly in 1997 and fell sharply during 1998.
\nThe fall in imports, and to a lesser extent the rise in exports
\ntoward Italy, inverted the sign of the external current account
\nbalance and generated a sizable surplus.<\/p>\n
Indonesian exports are aided by a currency devaluation of the
\nrupiah, but the creation of the euro -- the European Union's new
\nsingle currency -- is conducive to both exports and imports, as
\nit increases predictability and reduces currency risks associated
\nwith doing business with European companies. The euro has greatly
\ndecreased currency risks for European companies engaged in
\nimport, export and investment activities abroad.<\/p>\n
Moreover, Asia's crises, including currency devaluation, have
\npresented European companies with an opportunity to invest in
\nAsian companies.<\/p>\n
Despite the economic crisis, the Investment Coordinating Board
\n(BKPM) approved eight Italian investment projects during 1998 for
\na total of US$7.3 million. The projects are carried out mostly by
\nSMEs in the sectors of food processing, furniture, chemicals for
\nceramics and shoe molds. To encourage investments and joint
\nventures in industrial and technological sectors between Italy
\nand Indonesia, with special emphasis on cooperation between SMEs
\nof the two countries, an Italian Investment desk has been
\noperating at BKPM since 1996.<\/p>\n
Italy's capital goods are suited to the needs of Indonesian
\nindustries aimed at exploiting the country's natural resources,
\nas well as satisfying manufacturing sectors where exports and
\ninternal consumption are equally important, i.e. the textile and
\ngarment industry, shoe manufacturing and tiles.<\/p>\n
Indonesian entrepreneurs seeking trade opportunities with
\nItaly can contact the ITC, Gedung BRI II, 19th floor, Ste 1901,
\nJl. Jend. Sudirman 44-46, Jakarta, 10210, tel: 5713560, fax:
\n5713561, e-mail: icejkt@indosat.net.id for information.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/italo-indonesian-trade-relations-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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