Briefing on Trade and Investment Opportunities in Indonesia

On Friday (11/4) afternoon the Embassy hosted a “Briefing on Trade and Investment Opportunities in Indonesia”. In his keynote speech, the Chargé d’Affairés of the Embassy, Minister Dewa Made J. Sastrawan informed the participants that the Indonesian economy has rebounded back to pre-crisis levels.

The GDP growth in 2007 reached 6.3%. The growth was driven by strong exports, increasing investment and rising consumption and the economy is forecast to expand in 2008 by 6.5%. Foreign direct investment in 2007 reached US$10.34 billion, a rise of 73.2% over 2006, a sign of investor confidence in the long-term outlook for the Indonesia economy.

The UK is the 2nd largest FDI in Indonesia with 1,103 projects and reaching the value of US$35.9 billion. In January 2008, a US$ 2 billion government bond flotation in New York was well received with US investors buying nearly half of the 10-year bonds and 52% of the 30-years bonds. The rest was absorbed by buyers in Europe and Asia.

Mr. Sastrawan also mentioned that following the visit of Prime Minister Tony Blair to Indonesia in March 2006, the UK Government has designated Indonesia to be an emerging high-growth market along with other 16 countries. This decision is recognition of Indonesia’s full potential as a high growth economy for British investors, as already mentioned in the UKTI 5-Year Strategic Plan. The recent visit by the Duke of York on 2-6 March 2008 is a further recognition that Indonesia is not only potentially attractive, but also realistically benefiting for British businesses.

Meanwhile, the second speaker, Mr. Stephen Evans, High Growth Market Specialists – UK Trade and Investment, emphasized, among others, the needs for British companies to catch-up with their counterparts from other European countries to explore the untapped business opportunities in Indonesia.

Although Indonesia has become important source of income for a number of British companies and multinationals such as British Petroleum, Premier Oil, Standard Chartered, HSBC and Jardine Matheson, Mr. Evans mentioned that Indonesia needs more exposures to the potential investors which are based outside London. In this regard, he informed the participants of the briefing that UK Trade and Investment has started its joint effort with the Indonesian Embassy in London to promote business opportunities in Indonesia.

The briefing was held in conjunction with the promotion of 1st Indonesia Expo in Central and East Europe. The event is scheduled to take place on 7th – 10th May 2008, at EXPO XXI, Warsaw, Poland, organized by Indonesian Embassy in Poland. More than 140 exhibitors from Indonesia representing trade, investment and tourism sectors as well as government officials from central and local governments will participate in the EXPO. For more Information please check : http://www.indonesiaexpo-cee.com/index.php?mnu=125. (KP/TH)