Asia-Pacific triangle business project
Asia-Pacific triangle business project
In the arena of global trade, which is increasingly becoming a "world without frontiers", the importance of cross-border, or multilateral trade, in relationships cannot be overlooked. Austrade believes that there are a myriad of benefits to be obtained for all parties from the development of "triangle business" between three major players in the Asia-Pacific Region such as Australia, Japan and Indonesia.
Australia's trade relationship with Indonesia was estimated at A$4.3 billion last year, and is currently growing at an annual rate of 30 percent. Accumulated investments from Australia now stand at over A$6 billion.
Japan, on the other hand, has made a significant contribution to the development seen in Indonesia today. It is estimated that there are as many as 1,000 Japanese companies with representation in Indonesia, and accumulated investment from Japan currently stands at over US$30 billion. Moreover, Japan has been Australia's top export market for 26 years, and this is also an important measure of the depth of their relationship.
Against this background, Austrade's message to Australian firms is simple, "look next door" to find new relationships with Japanese firms who may be a major ally for developing new business in Indonesia.
To Japanese and Indonesian firms, Austrade encourages them to "look down under" and find a new source of people, products, and technology in Australia.
Since Elizabeth Masamune, the trade commissioner for Japan in Southeast Asia, arrived at Austrade Jakarta, she has successfully generated projects worth over $300 million, across industry sectors such as housing, transportation equipment, construction infrastructure and specifically with the realization of a large coinvestment by an Australian company with a Japanese trading house in an IPP power plant project in eastern Indonesia.
Other projects in the pipeline include the supply of ships and laboratory equipment, using Japanese aid financing, and a variety of industrial input supply projects for Japanese manufacturers, ranging from specialty chemicals and agricultural equipment to pearl diving equipment and boats.
Austrade also recently conducted a highly successful business networking event on June 26, Look Dow Under! Australia/Japan/Indonesia Triangle Business Networking Forum, which was heavily supported by the Jakarta-Japan Club, and attended by over 270 businesspeople from all three nations.
It is clear that after 15 months of groundwork, the possibilities for Australian companies to develop new business with Japan in Indonesia are expanding rapidly.