Indonesia, Finland seek to boost trade, investment

The Jakarta Post, Jakarta

Indonesia is expecting to attract as much as US$4 million in foreign direct investments (FDIs) from Finland in the coming years, following the strengthening of economic and trade relations between the two countries.

Speaking on the sidelines of a Finland-Indonesia Business Forum on Monday, chairman of the Indonesian Chamber of Commerce (Kadin) Mohamad S. Hidayat said such a figure was reasonable, considering Finland had recently been active in investing in Indonesia's telecommunications, forestry and transportation sectors.

"We will also encourage Finnish businesses to invest more in the fisheries and maritime sector, in which they are known to have world-class expertise," he said.

Finnish Minister for Foreign Trade and Development Mari Kiviniemi is currently on a four-day visit to Indonesia with a delegation of Finnish business representatives, to bolster the country's economic ties with Indonesia in her meeting with Coordinating Minister for the Economy Aburizal Bakrie and Minister of Trade Mari E. Pangestu.

The delegation consists of several major Finnish companies, including Ahlstrom, KCI Konecranes, Metso, Vaisala, GE Healthcare, Tieturi Vision, Sanako, Patria, Nordea, Bang & Bonsomer, Silo, Calyon Bank, NSH Nordbank, Martin Bencher and Finnvera.

Two-way trade between Finland and Indonesia has been rapidly increasing, reaching 245 million euro (some US$290 million) last year, with a 9 million euro surplus for Finland.

Finland's exports to Indonesia of mainly telecommunications equipment and machinery for the forestry and energy sector has continued to rise by 71 percent in the period ending in June, while Indonesia's exports of minerals, chemicals, food and beverages also increased by more than double.

Meanwhile, albeit still small, investments from the Scandinavian nation to Indonesia are also on the rise, reaching $0.3 million in the period ending August, from $0.1 million last year.

During the occasion, Kiviniemi also signed a memorandum of understanding with World Bank country director for Indonesia, Andrew Steer, on Finland's 8 million euro contribution to the multidonor trust fund for the reconstruction of Aceh.

Finland is also expected to donate another 3 million euro through the United Nation's Food and Agricultural Organization (FAO) and 2 million euro through the International Labor Organization (ILO).