EU-RI trade and investment relations

EU-RI trade and investment relations

Trade between the European Union (EU) and ASEAN has increased
fourfold since the signing of the EU-ASEAN Cooperation Agreement
in 1980. It has grown at an average of 16 percent per annum over
the past six years and reached ECU 79.2 billion in 1996.

Trade between Indonesia and the EU in 1996 was ECU 14.1
billion, which puts Europe second after Japan on the list of
Indonesia's trading partners. The EU is now the biggest export
market for Indonesia's manufacturing products.

From 1967 to 1997, total foreign direct investment approvals
in Indonesia accrued to ECU 149 billion. Nearly 30 percent of
this amount originated from EU member states with the United
Kingdom, the Netherlands and Germany accounting for 27 percentage
points. During this period, European investments in Indonesia
were greater than those from Japan, 21 percent, the U.S., 8
percent, or Asian countries, such as Hong Kong, 10 percent,
Taiwan, 6 percent, Singapore, 7 percent, or South Korea, 5
percent.

Main sectors for foreign investment are chemicals, paper
industries and metal goods. While other Asian countries invest
largely in labor-intensive export industries, like garments and
footwear, European investments have concentrated on capital-
intensive enterprises that supply the domestic market, such as
food, paper, chemical and nonmetallic mineral industries.