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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