Trade between Indonesia and Finland<\/p>\n
Indonesia is one of the most important trading partners for
\nFinland in Southeast Asia. Finnish exports to Indonesia increased
\nsteadily in the late 1980s and reached FIM 150 million (US$30
\nmillion). In the early 1990s, this rapid trade expansion
\ncontinued. In 1993, Finnish exports reached a record level of FIM
\n1,300 million ($255 million). This was not the end, however.
\nAfter several good years, Finnish companies exported FIM 2,550
\nmillion ($500 million) worth of goods to Indonesia.<\/p>\n
The crisis which has hit Indonesia has, without doubt,
\ninfluenced the trade between the two countries. It is estimated
\nthat Finnish exports to Indonesia may contract 30 percent to 40
\npercent in 1998 compared to the level in 1997. Even with lower
\nvolumes, predominant products in Finland's exports in 1997 to
\nIndonesia included machinery for forest industries, various kinds
\nof power generating equipment and telecommunications technology.<\/p>\n
During the 1980s, Finnish exports to Indonesia consisted
\nmainly of pulp and paper products. Since then, the role of pulp
\nand paper products has steadily decreased, and in 1997, their
\ncontribution to Finland's exports to Indonesia was only 7
\npercent. The bulk of the goods exported nowadays are used by the
\npulp-and-paper mills and by the plywood and wood-based panel
\nproducers. A significant part of the business consists of big
\nproject deliveries.<\/p>\n
Trade between Indonesia and Finland has traditionally been in
\nFinland's favour. Last year, the ratio was about 4 to 1. The
\nlargest categories in Indonesia's exports to Finland include
\nscrap metal, clothing and footwear. There has also been a slight
\ndecrease in Finnish imports from Indonesia. It is likely, though,
\nthat once the political, economic and social stability is
\nrestored, Indonesia will again embark on a track of vigorous
\ngrowth in its exports and its imports.<\/p>\n
The forest is important for both the Indonesian and the
\nFinnish economy. It is not surprising that the forestry sector is
\nthe bedrock of the bilateral economic relations between the two
\ncountries. Indonesia and Finland are engaged in a mutually
\nbeneficial cooperation within the framework of the bilateral
\nEconomic, Industrial and Technological Cooperation Agreement.
\nBesides regular joint-commission meetings, this framework
\nincludes a Working Group on Forestry and Forest Industries. Other
\nagreements signed between Indonesia and Finland are a Tax
\nAgreement, an Investment Agreement and an Air Service Agreement.<\/p>\n
There are more than 20 Finnish companies established in
\nIndonesia, in the form of representative offices, PT companies
\nand some joint ventures. Interest toward Indonesia as a business
\npartner has remained strong. There is no reason not to expect a
\nsubstantial increase in the number of businesses once the
\nIndonesian economy again starts to grow.<\/p>\n
Reforms in investment regulations as well as the current
\nprocess of upgrading and streamlining the legislative framework
\nfor business operations are encouraging signals for Finnish
\ncompanies.<\/p>\n
The Indonesia-Finland Business Council (IFBC) was established
\nin 1995 to bring Finnish business representatives together with
\ntheir Indonesian counterparts. The IFBC seeks to promote trade
\nbetween Indonesia and Finland by organizing luncheon and
\nbreakfast meetings with prominent speakers. IFBC also cooperates
\nwith similar bodies established by other European Union member
\nstates in Indonesia.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/trade-between-indonesia-and-finland-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}