Indonesia seeks Italy's help to boost small firms
Indonesia seeks Italy's help to boost small firms
JAKARTA (JP): Indonesia seeks more trade and investment
cooperation with Italy, especially to strengthen the country's
small and medium-sized businesses, the Indonesian Chamber of
Commerce and Industry (Kadin) says.
Aburizal Bakrie, chairman of Kadin, said yesterday that
Indonesia needed to follow Italy's success in promoting the role
of small and medium-sized companies in the country's economy.
"The priority at hand for both countries is how to strengthen
their dynamic partnership, including cooperation with small and
medium entrepreneurs," Aburizal said at a business luncheon with
visiting Italian Prime Minister Romano Prodi and his trade
delegation.
Aburizal said the two countries could cooperate in automotive
components, petrochemical and oil distribution sectors.
Prodi and 80 high-ranking government officials and prominent
business delegates arrived here yesterday for a two-day visit.
Prodi met with President Soeharto and State Minister of
Research and Technology B.J. Habibie here yesterday before
attending the luncheon with Kadin.
Prodi said yesterday that Italy was ready to contribute to the
growth of small and medium-sized Indonesian businesses
technically and financially.
"We are ready to extend special credit to help small and
medium-sized enterprises create joint ventures here," he said.
He said his country would likely help the development of
machine tools and metal industries, textile machinery, wood-
working machinery, and footwear and leather industries.
Kadin's vice chairman Fadel Muhammad said yesterday that Italy
had agreed to provide financial assistance to small and medium-
sized Indonesian businesses.
"We have spoken to the prime minister and the ambassador about
providing soft loans to small and medium Indonesian businesses,"
Fadel, also chairman of the Bukaka Group, said after the
luncheon.
He said Italy had agreed to give between US$5 million and $6
million a year in soft loans to Indonesian businesses initially.
Italy could also help boost the competitiveness of Indonesia's
fashion industry by providing designs to local footwear and
clothing manufacturers, he said.
"We are going to follow up immediately on (cooperation with
Italy in) the leather industry as well," he said.
Iburizal, also the chairman of the Bakrie Group, said
Indonesia also hoped to increase exports to Italy, which now
accounted for only 0.2 percent of the country's total imports.
Kadin data shows that trade relations between both countries
reached $1.95 billion in 1996, up from $1.57 billion in the
previous year, all in favor of Italy.
During the first quarter of this year, Indonesian exports to
Italy reached $245.1 million, while imports from Italy reached
$321.4 million.
Indonesia mostly exports shoes, oil, wood and cork, rubber and
synthetic rubber, furniture, coffee, tea, chocolate, spices,
yarn, textiles and garments.
Italian exports to Indonesia include industrial machinery,
cooling and heating systems, textile and leather machinery,
crafts and nonelectric machinery. (das)