French-Indonesian trade keeps growing
French-Indonesian trade keeps growing
Trade between France and Indonesia is growing steadily and reached FF 14.7 billion (US$2.5 billion) in 1997, an increase of 26 percent over 1996. French exports were boosted by the delivery of four Airbus A330 to Garuda Indonesia, and grew overall by 33 percent. Indonesian exports to France rose by 17 percent, and achieved a record level of FF 6 billion.
Indonesia saw its trade deficit with France increase from FF 1.3 billion in 1995 to FF 2.6 billion in 1997. In 1998, the bilateral trade balance will shift in favor of Indonesia, whose exports to France increased at a high pace during the first three months, boosted by their renewed competitiveness. The strong decrease of overall Indonesian imports following the slowing down of the economy will inevitably translate in a contraction of French exports to Indonesia this year.
In 1997, Indonesia was ranked France's 31st customer with a trade flow representing 0.53 percent of France's total exports and its 33rd supplier, providing 0.39 percent of France's total imports.
French exports to Indonesia are highly diversified and concentrate for the most part on industrial goods. Besides aerospace, which ranked first in 1997, France's main exports to Indonesia are electrical equipment, electronics, telecommunications equipment, machinery, chemicals, steel tubes and pharmaceuticals. Consumer goods exports are growing steadily but still represent a small percentage of total exports.
Indonesian exports to France are concentrated on a smaller number of products, particularly shoes, textiles and garments, plywood, rubber, consumer electronics, furniture, toys, coffee and cocoa. Textiles and garments are by far Indonesia's main export to France, and combined represent 26 percent of total exports, followed by food products (17 percent), shoes (14 percent), furniture (14 percent) and consumer electronics (13 percent).
Although the bilateral trade figures will remain below their potential level until the Indonesian economy recovers, they are expected to catch up strongly afterwards. A growing number of French companies are ready to develop and increase their market share in Indonesia. They have the necessary capacity, a high level of technology, a skilled workforce and their strategies are already strongly directed toward foreign market.
An exhibition, France High Tech, held in Jakarta in April this year, had more than 15,000 visitors. Staging such an important event amid the crisis was proof of France's confidence in Indonesia's future.
Table: France-Indonesia bilateral trade (in million FF)
French Indonesian
exports to exports to Trade
Year Indonesia France Balance
---------------------------------------
1990 2,819 2,940 -121
1991 3,728 3,617 +111
1992 6,619 4,265 +2,354
1993 4,549 4,582 -33
1994 4,169 4,472 -303
1995 5,173 4,537 +636
1996 6,513 5,148 +1,365
1997 8,685 6,027 +2,658