A chance to close the gap
A chance to close the gap
It was with confidence that the Indonesian delegation, led by President Soeharto, attended Sunday's opening of the "Hannover Messe 1995" by German Chancellor Helmut Kohl.
Indonesia was chosen by the industrial fair organizers to be Germany's "Country Partner" because of its successes in economics, development and technology.
The confidence was further enhanced yesterday when President Soeharto officially opened the two Indonesian pavilions in the fair, attended among others by Chancellor Kohl. They are the largest pavilions at the fair -- occupying an area of 4,200 square meters -- and connected to the celebration of Indonesia's 50th anniversary of independence.
The Hannover Fair is the appropriate forum to showcase Indonesia's successes in industrial technology as it is the world's largest industrial fair. This is the fair where the latest developments in industrial technology from the world over are exhibited every year to be examined by the scrutinizing eyes of the international business community. Not surprisingly, more than 100 Indonesian private and government-owned companies and agencies are participating this year, taking advantage of this unique gathering of very select businesses.
Obviously the showcasing is not an end in itself. It is only a means to get to something else -- world business. Indonesian executives participating in the fair are there not to show off but to substantiate this country's progress and successes. This is a golden opportunity to demonstrate Indonesia's capabilities in industrial technology, which could make the business world more competitive.
It will not be an easy job, considering the fact that this country is not yet known in the business world as a source of industrial technology. And Indonesia cannot afford to fail in its efforts to promote its capabilities.
Take for instance the bilateral trade between Indonesia and Germany. Indonesian exports to Germany grew from US$492.9 million in 1989 to $1.18 billion in 1993 (latest available figure), or an increase of 139.03 percent within four years. This figure looks impressive, especially since it consists of non-oil-and-gas exports only.
During the same period, however, Indonesia's imports from Germany grew from $920.4 million to $2.07 billion, an increase of 125.16 percent, only slightly less than the export growth. Indonesia's trade deficit with Germany has more than doubled, from $427.5 million to $894.2 million. A preliminary figure for the period of January through November 1994 shows that the trade gap is still widening -- to $1.05 billion in favor of Germany.
Seen from a different point of view, both countries cannot yet claim each other as a substantial trade partner. Indonesia's exports to Germany amounted to a mere 0.61 percent of the total imports flowing into Germany during the period of January through August last year, the latest available figure. During the same period, German exports to Indonesia amount to only 0.57 percent of that country's total exports.
Another example is Indonesia's trade relations with the European Union. In 1989 Indonesia imported $2.57 billion worth of goods and services from the group and exported $2.34 billion worth of goods and services to the nine countries of the EU at that time. In 1993, the figures grew, respectively, to $5.65 billion and $5.30 billion, marking an increase in the trade deficit of 51.04 percent within four years.
Those are the figures which challenge Indonesian executives in Hannover these next few days. We can only hope that Indonesia's promotional efforts during this fair will at least result in closing the big negative gap.