Thu, 12 Jun 1997

Indonesia and Queensland -- Strong partners in a global era

The official openings of the Queensland Trade and Investment Office in Jakarta on June 12 and the Queensland Representative Office in Semarang on June 14 mark important steps forward in the rapidly growing relationship between Indonesia and Queensland, Australia.

The Premier of Queensland, Rob Borbidge MLA, and the Minister for Economic Development and Trade, Doug Slack, are both in Jakarta to participate in this office opening, accompanied by a 60-strong Queensland business delegation to further cement the relationship.

This will be the Premier's first official visit to Indonesia, although the Queensland Government has been fostering a Sister State relationship with Central Java for more than five years. During his stay, the Premier will be re-signing the Sister State Agreement with Central Java.

Minister Slack, in addition to his involvement at the opening of the Trade and Investment Office in Jakarta and the Representative Office in Semarang, will also lead a 20-strong delegation of Queensland businesspeople to the Indonesia- Australia Business Council Annual Conference, to be held from June 15 to June 17.

Queensland's partnership with Indonesia is reflected in its desire to promote joint-venture agreements between Queensland and Indonesian companies. Many of the business mission participants are keen to meet with prospective partners in a variety of sectors, including food processing, joint manufacturing of electrical machinery and agribusiness opportunities.

The newly appointed Queensland Government Commissioner to the Jakarta Office, Heath McMichael, said: "Queensland's relationship with Indonesia is not a one-way street.

"Queensland's trade with Indonesia is growing rapidly and we encourage prospective Indonesian business partners to look closely at opportunities in Queensland, especially in areas where we have comparative advantage. Mining-associated services, feedlotting, software packages and development are examples of these."

The Queensland Government is interested in a reciprocal relationship with Indonesia, which recognizes each others respective strengths and complimentarities.

Queensland is a natural partner for Indonesia by virtue of its strengths as a supplier of technical expertise for the exploitation of Indonesia's vast reserves of natural resources and training to improve the standards of Indonesia's abundant human resources.

The globalization of the Indonesian and Queensland economies offer many challenges and benefits to both. The challenges can be addressed through planning, clever application of available natural and human resources and the development of a network of like-minded partners.

Queensland and Indonesia are just such partners -- operating at differing stages of development but with complimentary programs of development and progress.

Additionally, these two new trade offices provide important lines of communication in Government-to-Government relations, an important facet of ensuring that the partnerships forged between Indonesian and Queensland businesses work to advance both economies.

Indonesia, like Queensland, is a highly diversified market, with the two-way trade figure between the two economies currently standing at AUS$1 billion.

One of the major areas of trade between Indonesia and Australia is in the form of training and education. Easily one of the most valuable benefits which Queensland can offer Indonesia is the development of its most valuable resource -- the human resource.

The young people of Indonesia form the human resource on which the future development of Indonesia is based and Queensland is proud to be able to play a significant part in this crucial resource development.

In terms of student numbers, almost 17,000 Indonesian students chose to study in Australia last year and this is 12 percent of Australia's international student population.

Many chose to study in Queensland because of the high quality of the training and educational campuses available throughout Queensland and also due to their access to smaller regional campuses.

Queensland is Australia's most-decentralized state, with 70 percent of its population living outside the capital city, Brisbane. Many of the major regional centers offer a range of quality training and educational facilities.

These are often seen as preferable locations for study as they are well away from the distractions and potential dangers of larger cities.

These international ties help to form a close cultural and personal bond between the two countries as young Indonesians learn about Australia and their Australian classmates learn about Indonesia. This can only strengthen the long-term relationship between the two countries.

Because of Queensland's proximity to Indonesia, especially eastern Indonesia, Queensland is particularly keen to assist Indonesia to develop the natural and human resources of its eastern provinces.

Minister Slack said: "We are taking a leading role in the Australia/Indonesia Development Area (AIDA) initiative and will be working closely with the Indonesian public and private sectors to foster mutually beneficial projects, with a commercial focus in the sugar and livestock, tourism, transport, mine development and remote power generating sectors, to name but a few examples.

"To underline the seriousness with which we view our relationship with Indonesia, we are opening the two offices in Jakarta and Semarang to promote business partnerships and ensure that the potential for mutually beneficial commercial advantage is realized.

"We are particularly eager to see our Memorandum of Understanding with Central Java given more body, with increased cooperation in the education sector (for example twinning agreements between Central Java universities and TAFES/Schools of Technology), livestock herd improvement and management, exchanges of expert personnel in the aquaculture and horticultural fields and in tourism to name some examples.

"Our aim is to continue to build a strong partnership with Central Java as a model for productive cooperation between Queensland and other provinces in Indonesia. We hope that our relationship with Central Java can serve as a bridge to the rest of Indonesia."

The Trade and Investment Offices in Jakarta and Semarang will also assist the business community by:

* Identification of opportunities for collaboration between Queensland and Indonesian businesses.

* Identifying business partners. Many companies in Indonesia and Queensland are very keen to forge alliances with like-minded enterprises.

* Facilitating two-way investment between Queensland and Indonesia.

* Promoting the strength of the Queensland economy in the areas of agribusiness and tourism development, mine equipment and service, transport, manufacturing and education and training.

The two Indonesian offices will be staffed by a number of experienced trade and investment professionals. Heath McMichael, as the commissioner to Indonesia, with two marketing managers from the commercial sector reporting to him.

Because of the breadth of experience and the many climatic and geographic similarities between the two regions, a representative from the Queensland Department of Public Works and Housing will be placed in the Trade Office to assist with enquiries from the building and construction sector. A representative of the Queensland Tourist and Travel Corporation will also be in the Office.

In the Semarang Office, Mal Lane has been appointed as Queensland Representative to Central Java. Some of Lane's functions include the servicing of the sister-state relations, assistance with Queensland education and training opportunities, trade relations and investment.

Queensland's Premier Borbidge said: "One of the Queensland's government's greatest assets is our understanding of business and what it takes to build a business.

"As we face the challenges of the global era before us, the close partnership of Queensland and Indonesia will offer many opportunities for mutual growth."

For more information about the opportunities for trade and development with Queensland, please contact:

Heath McMichael

Queensland Commissioner

Queensland Trade & Investment Office

Plaza Bapindo Menara II, 27th Floor

Jl. Jend. Sudirman Kav. 54-55

Jakarta, 12190, Indonesia

Telephone: (021) 5266632, Fax: (021) 5275653