Indonesian Political, Business & Finance News

New fields of Germany-RI economic ties at hand

| Source: JP

New fields of Germany-RI economic ties at hand

The bilateral exchange of goods between Germany and Indonesia
has increased steadily during the past few years, ushering in new
fields of opportunity for fruitful economic cooperation.

Indonesia's demand for infrastructure will remain high for
many years to come for obvious geographic reasons. Among the most
important infrastructural issues are the rehabilitation of
container harbors and airports, the restructuring and extension
of railway and urban transportation systems, the production and
distribution of energy and the improvement of telecommunications
structures.

German industry is willing to share with Indonesia the
experience it has gained in these sectors during the past 40
years, through investment and technical assistance.

Siemens' engagement in the construction of Paiton II and the
partnership of Deutsche Telecom and PT Satelindo are examples of
this intensive collaboration between Indonesia and Germany.

Industrial growth cannot take place without a motivated
highly-skilled labor force. Germany has, therefore, offered to
share its experience in vocational education and training with
Indonesia.

About 50 technical experts and vocational trainers are
presently in Indonesia trying to establish a sistem ganda
(multipurpose system), ensuring that Indonesia's steady economic
growth is based on a skilled labor force.

Germany also plans to assist small and medium-sized
enterprises, which experience greater difficulties in meeting the
economic challenges of the Asia-Pacific region.

The German Government plans to establish German industrial
centers in several important regions to assist small and medium-
sized enterprises to enter new strategic markets.

These centers will provide affordable office space as well as
juridical and fiscal expertise. Firms which want to start
production after an initial period will find affordable
industrial estates nearby.

The next "German house" will be built in Jakarta at Bumi
Serpong Damai, which will also be the location for a German
industrial center, a German industrial estate and a German-
Indonesian institute for vocational education and training and
the German International School.

The foundation ceremony for the German industrial center is
planned for March 1997.

The German-Indonesian Forum for Economy and Technology,
founded last year in Germany, is another means for strengthening
German-Indonesian economic collaboration.

The forum, chaired by Germany's Federal Minister of Economics
Dr. Gunter Rexroth and Indonesia's State Minister of Research and
Technology B.J. Habibie, will meet again on Oct. 26, just before
Federal Chancellor Dr. Helmut Kohl's arrival in Indonesia.

The forum will identify further fields of potential economic
and technological cooperation. Environmental technology,
biotechnology and the gas and oil sector are considered promising
fields for collaboration.

The deepening of the German-Indonesian relationship also
depends on mutual knowledge of each other's culture and
mentality.

Germany has realized that numbers of young Indonesians
choosing to undertake further study or postgraduate activities in
Germany has steadily decreased over the past 15 years.

In order to reverse this trend, marketing activities from the
German side has to be increased, more information has to be
provided and promotion of facilities must be reconsidered.

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