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The Italian Trade Commission activities in Indonesia

Italy and Indonesia are long-standing and solid trade
partners. Last year, the value of the trade between the two
countries reached 1,469 million euro, with a surplus of 664
million euro in favor of Indonesia.

Indonesia's exports to Italy during the year reached 1,066
million euro, comprising mainly coal, garments, refined petroleum
products, pulp and paper, sport shoes, textile yarns and
furniture products.

Commodities Indonesia imported from Italy were worth 402
million euro and included capital goods such as industrial
equipment, textile and leather machinery, machine tools, cables,
chemicals and pharmaceuticals.

Industrial equipment accounted for almost 50 percent of
Italian exports to Indonesia. Italy is the fifth-largest EU
exporting country to Indonesia.

Last year, the Investment Coordinating Board (BKPM) approved
nine Italian investment projects worth US$1.8 million. The
projects are being carried out mostly by small and medium-sized
Italian enterprises, involving ecotourism, furniture manufacture,
hotels and the service sector.

To encourage the flow of Italian investments, the Italian
Trade Commission (ITC), in cooperation with the BKPM in Jakarta,
has been assisting Italian companies since 1997 to form joint
ventures with Indonesian small-scale companies in the industrial
and technology sectors.

Indonesia and Italy have enjoyed a good trade relationship for
many years thanks to the active role played by the ITC and the
Italian embassy in promoting cooperation between businesses in
the two countries.

Opened in 1981, the ITC office in Jakarta provides information
and assistance to Indonesian companies interested in dealing with
Italian counterparts.

It helps business communities in the two countries seek
trading partners and develop business opportunities.

In conjunction with Italy's annual promotional program for the
year 2003-2004, the ITC invited delegations of prominent
Indonesian businessmen to attend several important trade fairs in
Italy.

The businessmen attended the SIMAC International exhibition
of machines and technologies for footwear and leather goods,
which took place in Bologna from April 27 to April 30, this year.
This expo is one of the most important trade exhibitions in the
world in terms of visitors, technological innovations and the
number of items on display.

The Italian footwear and leather goods industry, with its
leading position in international markets, has become an
important reference for Indonesian companies in finding out the
latest trends, not only in technology and innovation but also in
marketing.

Besides helping Indonesian businesses attend fairs in Italy,
the ITC has also taken part in several Indonesian trade shows
held in 2003 and 2004, with an information stand -- Punto Italia.

Regarding textiles, the ITC and the Italian Association of
Textile Machinery Producers (ACIMIT), will hold two important
events in the coming months.

- Eleven Italian textile machinery companies will take part in
the Bandung Intertex 2004 fair, held from June 17 to June 21. At
the Punto Italia pavilion, Italian companies and ITC staff are
available to meet with Indonesian entrepreneurs and provide
assistance and information on a wide range of quality machinery
from Italy.

- A two-day workshop on the textile industry will be held in
Bandung in November. The event will offer a rare opportunity for
leading Indonesian textile companies to see the latest
developments in textile technology.

Regarding furniture, the ITC and the Italian Woodworking
Machinery and Tools Manufacturer's Association (ACIMALL),
together with 20 Italian companies, will take part in the
Aseanwood exhibition, which will be held in Jakarta from Sept.16
to Sept. 19, this year. The Italian pavilion will occupy an area
of more than 400 sq meter at the exhibition.

In conjunction with our annual promotional program for the
year 2004, a technical training course in stone quarrying and
processing will also be held in Italy from Sept. 27 to Oct. 1.
The course will follow up a similar workshop successfully
organized in Jakarta last year by the International Marble
Institute of Milan and the Italian Association of producers of
marble, granite and of machinery and tools for stone processing.

An Indonesian delegation will also visit Tanning Tech, the
world's largest exhibition of tanning technology, in Bologna in
November. In cooperation with the consortium of Printed Circuit
Board (PCB) technology, another Indonesian delegation will also
visit Italy from June 21 to June 27 to explore
possible industrial cooperation with Italian partners.

In today's highly competitive global market, the need to
improve quality and standards and strengthen export-oriented
industries is a top priority.

Italian capital goods and technology, renowned worldwide for
their high quality, flexibility and versatility
are already suiting the needs of Indonesian businesses.

Indonesian businessmen seeking trade and investment
opportunities in Italy or looking for any information on
innovative Italian products are welcome to contact the ITC in
Jakarta.

Augusto Di Giacinto
Italian Trade Commissioner
Gedung BRI II 19th floor suite 1901,
Jl. Jend. Sudirman 44 - 46 Jakarta 10210
Tel. 5713560; fax 5713561;
Email:giacarta.giacarta@ice.it
Website: www.italtrade.com/indonesia.