Part 2 of Polan-1
Part 2 of Polan-1
Poland - Indonesia economic relations
Indonesia is an important trade partner of Poland in the
Southeast Asian region. Reciprocal trade shows a steady growth
tendency. According to Polish statistical data, in 1998 trade
reached a value of US$208 million, in 2000, US$219 million, in
2002, US$240 million and in 2003, US$285 million.
During the last decade, the trade balance has traditionally
been in favor of Indonesia. Starting from May 1st, 2004 - the
date of accession of Poland to the European Union - the New EU
Generalized System of Tariff Preferences, offering attractive
advantages to trade partners from both countries, has created
favorable conditions for access of Indonesian commodities to
Polish market.
A long history of commercial relations between the two
countries has seen Indonesia exporting to Poland mainly
agricultural products and raw materials, such as natural rubber,
coffee, tea and spices. Even though natural rubber, closely
followed by palm oil, is still among the leading export products,
the commodity structure of deliveries to Poland has undergone
significant changes in recent years.
The share of electrical and mechanical machinery and equipment
is already in excess of 25 percent and rising every year.
Chemical compounds, man-made yarns, garments, clothes, furniture
and paper products are also exported to Poland in large
quantities.
On the other hand, Polish companies continue to supply
Indonesia with various kinds of machinery, civil engineering
equipment, and also chemicals including cosmetics, powdered milk
and electrical apparatus. In addition, the first Polish transport
and passenger aircraft have been delivered to Indonesia in 2004,
after having obtained Indonesian civil aviation authority
airworthiness certificates earlier in the year.
Next year will see further deliveries of aircraft, helicopters
and small ships manufactured in Poland. The opening of
cooperation in the transportation sector will further increase
the level of bilateral trade, at the same time giving more
balance to the mutual exchange, although still leaving Indonesia
with an overall surplus.
It can be noted with satisfaction that in 2004 five co-
operation agreements were been signed between Indonesian
industrial companies and their Polish counterparts, providing for
mutual co-operation in the field of joint production, technology
transfer and exchange of information. Furthermore, Memorandum of
Understanding on Co-operation between National Agency for Export
Development and Memorandum of Understanding between Indonesian
Investment Coordinating Board and Polish Information and Foreign
Investment Agency concerning Co-operation in Promoting Two-way
Direct Investment and Fostering Business Partnerships, have been
concluded this year.
The newly established co-operation in transportation and
logistics equipment and between government agencies in promoting
of mutual investment and business relationships, will no doubt
serve to further enhance bilateral trade and investment ties.
Polish businessmen consider Indonesia an attractive market
offering great prospects. Producers and exporters alike are
looking for new opportunities to supply mining, electrical,
agricultural and food processing equipment, aviation and maritime
industry products, machine tools, packaging machinery, power
generation equipment, home - decoration elements, various kinds
of chemicals, including cosmetics, fertilizers, herbicides and
insecticides as well as technology, all of which are in demand in
contemporary Indonesia. High-quality "MADE IN POLAND" products
can still be offered at very competitive prices, thanks to our
comparative advantage in labor costs.
Polish business is keen to acquire new trade partners in
Indonesia and establish more direct relations with individual
companies. Each year, the offerings of Polish companies is
presented in various fairs and exhibitions in Indonesia. In 2004,
Polish defense and logistics equipment was presented at the
"INDODEFENCE 2004" exhibition. Polish manufacturing sector
products are currently being promoted at the Poland Information
Stand No. 2430 in Hall A, at the "MANUFACTURING INDONESIA 2004"
exhibition, being held now (Dec. 8 till Dec. 11) at the Jakarta
International Exhibition Center, in Kemayoran.
Indonesian businessmen interested in starting activity in the
Polish market will find many attractive opportunities. It is very
easy to open a representative office or find to a partner for
cooperative ventures. It has to be kept in mind that office and
living costs in Poland are still relatively low compared to
western EU countries. Therefore, Poland is expecting more and
more Indonesian companies to visit Poland in the future,
searching for trade and business opportunities.
The best opportunity to get acquainted with Polish export
products, and also to present Indonesian products to potential
customers, is to participate in international trade fairs and
exhibitions organized in Poland.
In order to explore new areas of bilateral trade and to
further strengthen economic cooperation between Poland and
Indonesia, more direct contacts between our respective business
circles is required. Then, no doubt, mutual trade will continue
to grow to the benefit of both of our countries.
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