Committed for long-term deals
Committed for long-term deals
Indonesia has, for a long time, been a major Asian trading
partner for France.
Despite the deep economic and monetary crisis of the late
1990s, French companies have confirmed their commitment to the
Indonesian market.
Around 120 French companies are present in Indonesia,
including 80 joint ventures. It is estimated that French
investment in Indonesia amounts to approximately US$4 billion and
provides 30,000 direct and indirect jobs for Indonesians.
The main areas for French exports are industrial products
including semi-products (39 percent) like chemicals and
electrical components, and equipment goods (36 percent).
Between 1997 and 1999, the economic crisis strongly affected
French exports which plunged 70 percent in value (the drop was
most felt in the equipment goods sector where France has strong
comparative advantages).
However, due to Indonesia's recovery, French exports in 2001
increased by 28 percent.
In France, Indonesian exports hold a strong position with
consumer goods: textiles, clothes, leather products (25 percent),
furniture (25 percent), and also agricultural and food products
(11 percent).
During the crisis, France was a steady market for Indonesian
exports and the trade balance has been close to 1 billion euro in
favor of Indonesia for the past two years.
French technology and equipment perfectly matches Indonesia's
requirements to modernize its industry and infrastructure.
Major sectors of trade and investment include
telecommunications, basic infrastructure (mainly road and
transportation equipment), water management, agriculture and
food.
One of the tools that has been promoting these objectives is
our bilateral cooperation.
France has been providing soft loans to Indonesia and is an
important bilateral donor of financial aid with more than 300
projects financed over the last 20 years, which is the clearest
symbol of France's long-term commitment to Indonesia's economic
development.
France fully supports the Indonesian government in its efforts
to reform the economy. France, a member of the Paris Club, agreed
with other donor countries to an important rescheduling of
Indonesia's public debt in April.
In Indonesia, in spite of the economic crisis, some French
investors have been achieving very good results for the past two
years.
This is particularly true for companies working in the retail
trade. Regarding these results, and bearing in mind that France
represents an important market for Indonesian exporters, we are
sure that our bilateral economic relations will be stronger in
the future provided that fiscal and judiciary security is
assured.