Trade

Trade

Indonesia has been a major Asian trading partner for France for a long time, and despite the deep economic and monetary crisis affecting Indonesia since mid-1997, French companies have confirmed their commitment to the Indonesian market. (see ambassador's message)

This situation is expected to persist in the coming years, in line with a gradual increase in our Indonesian imports.

The main areas for French exports are semi-products (48 percent), including chemicals (19 percent) and electrical components (12 percent).

During the 1997-2000 period, the economic crisis strongly affected French exports, which decreased by 71 percent in value (the drop was mostly registered in the equipment goods sector where France has a strong position).

However, in line with the recovery registered in Indonesia since January 2000, our exports have increased by 17 percent last year.

Year 2000 confirms the stronger trade relations with Indonesia, which accounts for nearly 2 percent of our exports outside the European Union.

The first figures for 2001 show a continuation of this positive trend with a new increase of more than 45 percent.

Indonesian exports to France have strong positions in consumer goods: textiles/garments and leather products (27 percent), furniture (24 percent), and agricultural and food products (12 percent).

Last year, Indonesian exports to France have steadily increased by 20 percent.

(Data in the form of graph to be placed here - bsr)

Economy, finance

The financial cooperation between the two countries has been initiated in the early 1970s, reflecting the policy of the French government to promote economic links between our two countries.

In the last 30 years, 2.5 billion Euro has been committed to finance over 300 projects of development in the following sectors: power generation and transmission, TV and telecommunications, water treatment, airport and railway infrastructure, agriculture and health.

With the crisis affecting the implementation of new infrastructure projects, the French government has confirmed its commitment to continue its financial cooperation with Indonesia through its participation in the international financial institutions as well as on a bilateral basis.

French aid to Indonesia is, however, being adapted to the social priorities created by the economic conditions, focusing on health, agriculture and fishery project, while major infrastructure projects already committed are being continued in the railway sector, civil aviation safety equipments, irrigation, energy and water treatment and distribution sectors, tourism and service industries.

On the international level, France is participating in the International Monetary Fund (IMF), World Bank and Asian Development Bank assistance program to Indonesia.

As a member of the group of official creditor countries to Indonesia gathered in the Club de Paris, France is also contributing to the two successive public debt rescheduling agreements signed in September 1998 and April 2000.

Out of a total of US$10 billion rescheduled loan, due to mature between mid-1998 and end of 2002, France is involved for an amount of $700 million.

The commitment of the French authorities to support Indonesia in this difficult period is based on a long friendship between the two countries and it will be continued in the future with the objective to strengthen our bilateral relations.