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.