Thu, 14 Jul 1994

EU to establish information center

JAKARTA (JP): The European Union (EU) will establish an information center here later this year to promote investment and trade relations between Indonesia and the Union's 12 members.

EU ambassador to Indonesia Klaus Peter Schmallenbach said during a business luncheon hosted by the World Trade Center yesterday that the European-Indonesian investment and business information center will provide information services particularly to small- and medium-scale businesses which usually have no representative offices overseas.

The planned center will provide information on government policies and business opportunities in Indonesia for European business people, as well as information on policies and business opportunities in Europe for Indonesian executives, he said.

He added that the planned center, in providing information, will cooperate with various institutions, including the Indonesian Chamber of Commerce and Industry (Kadin) and the World Trade Center.

Schmallenbach said the EU, which will gradually reduce its import tariffs from an average of 6.8 percent at present to 4.1 percent in the coming years, and provide a GSP (Generalized System of Preferences) facility, is offering wide business opportunities to Indonesian exporters.

EU countries are also expected to increase their investments in Indonesia, he said.

Indonesia's exports to the EU steadily increased from 3.57 billion European Currency Units (ECUs) (US$4.43 billion) in 1991 to 4.34 billion ECUs in 1992 and to 5.03 billion ECUs last year, while its imports from the union rose from 3.2 billion ECUs to 4.05 billion ECUs and to 4.06 billion ECUs in the same years.

The EU's investment commitments approved by the Investment Coordinating Board (BKPM) for non-oil and non-financial businesses in Indonesia increased from $843.5 million in 1991 to $1.35 billion in 1992 before falling back to $905.5 million last year. During the first six months of this year, the EU's investment commitments approved reached $675.5 million. (riz)