German-Indonesian business, industry ties
German-Indonesian business, industry ties
BONN (JP): German business and industry interests in Indonesia as an economic partner have not been diminished by an ongoing financial and monetary crisis there and they continue to regard the nation as an important trading partner and location for German investments in the Asian region.
This was emphasized by the participants at a conference on the current political and economic situation in Indonesia held recently in Frankfurt. About 200 representatives of Germany's trade and industry attended the conference. They were joined by a high-ranking Indonesian delegation of government officials and businesspeople, led by the Minister of Industry and Trade Rahardi Ramelan.
The conference, Indonesia Today, was convened jointly by the Credit Bank for Reconstruction (KfW) in Frankfurt, the Asia- Pacific Committee of the German Industry in Cologne and the German-Indonesian Forum for Economy and Technology.
Representatives of German industries and business and industrial associations reaffirmed their confidence in the Indonesian economy and expressed their readiness to help the nation to overcome its difficulties through investments, technology and know-how transfer and promotion of trade.
Germany was ranked as the 10th largest foreign investor in Indonesia in 1997, with direct investments during the first six months of 1998 increasing to DM 131 million from DM 126 million registered for the whole of 1997.
Former minister for economics Dr. Guenter Rexrodt, told the conference that the German government expressed confidence in Indonesia's ability to emerge from the crisis in the near future and assured continued assistance to cope with its difficulties.
As a demonstration of confidence in the Indonesian economy, Germany is sticking to its plans to hold a Technogerma exhibition in Jakarta from March 1 to March 7, 1999. Indonesia is the only country where the German industry and technology show will be held for the second time.
The German Center for Industry and Trade in Bumi Serpong Damai, near Jakarta, which was recently completed, is expected to give a further boost to bilateral industrial cooperation and trade, especially between small and medium-sized enterprises (SMEs).
The German government holds the view that Indonesia's financial crisis should not be seen as a setback, but as an opportunity to implement structural reforms needed for more competition and strengthening private initiative, which will create the conditions for more investments, new employment opportunities and increased incomes for the population.
Foreign enterprises will strengthen the international competitiveness of the Indonesian economy. It is also very important to continue Indonesia's cooperation with the IMF, which will guarantee international solidarity and support also in the future.
Rahardi told the conference that vast opportunities for German investments existed in the area of exploiting Indonesia's natural resources. German companies could also benefit from various incentives given to promote the production and export of a variety of manufactured goods.
Dr. Gert Vogt, KfW's Managing Board spokesman, said the fundamental strength and potential of the Indonesian economy are still there and, therefore, the crisis should be seen as a chance to make a new course toward long-term and sustainable development. He commended the "bold steps" taken by the Indonesian government to lay the foundation for the country's economic recovery. He expressed the view that the outlook for overcoming the crisis in the foreseeable future was very promising if the government continued its reform course. He offered the KfW's continued assistance, together with its partners in Indonesia and in Germany, to accelerate the process of economic recovery.
So far, the KfW has made available to Indonesia grants and credits amounting to DM 14.5 billion, out of which DM 10 billion was given as commercial credits for long-term export and project financing and supporting the SMEs, while the remainder was given as grants and soft-term credits within the framework of development cooperation between the two countries.
Germany is one of the main trading partners of Indonesia and bilateral trade has been growing rapidly. The total volume of exchange of goods for the first time reached DM 9.28 billion in 1997 as Germany's exports to Indonesia went up by 30 percent to DM 5.2 billion, while Germany's imports from that country increased by 23.8 percent to DM 4.07 million. K.M. Mathew