California opens ASEAN trade and investment office

JAKARTA (JP): The U.S. state of California opened its trade and investment office for Southeast Asia here yesterday.

"We were previously trying to cover this market out of the Hong Kong office which is responsible for this region," the deputy secretary for trade and investment of the California Trade and Commerce Agency, Brenda M. Lopes, told The Jakarta Post after opening the office.

She said the opening of the office is aimed at getting closer to the region's business people because a study of the Association of Southeast Asian Nations (ASEAN) revealed that Indonesia has shown the most potential for growth in its business with California.

The agency's data indicate that California's exports to Indonesia declined by 38.8 percent from $685.9 million in 1993 to $419.5 million in 1994 but increased back by 33.8 percent to $561.6 million last year.

She added that the Jakarta office will seek cooperation with Indonesian companies on services, research, infrastructure and manufacturing.

"We have the opportunities to do that with the support here of the U.S. commercial service," said Lopes.

The newly-opened office is located in the compound of the U.S. commercial center.

Prospects

The Indonesian Representative of the California Trade and Commerce Agency, Doings PL Situmeang, told the Post that compared to the other countries in the region, Indonesia has better prospects for the expansion of its business ties with California because of its huge population, abundant natural resources, growing per capita income and the improvement of its trade and investment climate.

He said California, dubbed the silicon valley of the United States, is a major source for information technology and medical instruments companies, with which Indonesian firms can develop links.

"Indonesian companies can cooperate with Californian firms, such as Hewlett Packard and Acer, to develop computer designs and technology," Situmeang said.

He said that Indonesia could also adopt Californian technology and expertise to develop the use of clay for various purposes. Clay is currently only used commercially in Indonesia in the tile industry.(kod)