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   European Endeavours
Europe’s economic relationship with Indonesia has never been stronger. Jakob Friis Sorensen explains why there’s never been a better time to invest in Indonesia.
JaKob FrIIS SorenSen Chairman, european business Chamber of Commerce in Indonesia (euroCham)
  Trade ties between Europe and Indo- nesia are nothing new; they can be traced back to the 14th century when Portuguese ships first sailed into Malacca. But the vol- ume and range of business and investment flowing into Indonesia is reaching new heights and appears likely to play a major part in the continued economic develop- ment of the country.
one of the keys to cementing ties be- tween the EU and Indonesia is EuroCham, an organisation that represents European business interests and maintains an active dialogue with the Indonesian government. Jakob (also President director of Maersk In- donesia), is keen to point out that although EU investment in Indonesia reached a stun- ning 3.8 billion USd in 2011 (almost triple the 2004 figure), and trade values reached 22.3 billion USD, these numbers haven’t peaked.
What is significant about EU investment, is the industry sectors that are receiving at- tention. While other parts of the world are investing heavily in Indonesia’s resource sectors, EU investors are primarily focused on improving the facilities and output of the industrial sector; an area in which the Indo- nesian government is keen to encourage interest.
Blossoming Relations
Why are EU businesses so keen to seek involvement with the Indonesian economy? This can be partly attributed to the fact that Indonesia has the largest economy in the region, but also the relative stability of the region. While some parts of the world have recently witnessed fierce upheavals, Indo- nesia has made the difficult transition to de- mocracy without violence.
Indonesia is increasingly being recog- nised as a country that is handling social and economic development with great composure and is a secure region in which to invest resources.
To ensure that this blossoming rela- tionship between the EU and Indonesia continues to thrive, the Europe Indonesia Business development (EIBd) program has been created to act as a forum for com- panies from both parts of the world. Initially held in Brussels in 2009, it was also organ- ised in Jakarta in 2010 in association with the Indonesian Chamber of Commerce and Industry (KAdIn). Although full use of this dialogue has yet to be realised, new com- munication channels have been opened
EU investment in Indo- nesia reached 2.77 billion EUR in 2010.
and efforts are being made to promote spe- cific sectors of Indonesian industry that are primed for development, as well as encour- aging projects relating to the improvement of local infrastructure.
SMEs are also a key target for Euro- Cham. Europe already has a vast com- munity of businesses of this size and Jakob believes this represents a tremendous op- portunity to forge relationships with Indone- sian counterparts. Many European SMEs own cutting-edge technologies that, if uti- lised by Indonesian businesses, could be a “game changer” in terms of allowing them to compete with larger firms. The Indonesian government also have a vested interest in building up the SME sector, as this will pro- vide a more stable base for the economy
than one that depends primarily on a limited number of major corporations.
In July 2012, EuroCham introduced a SME-specific membership that will allow businesses with limited finances to benefit from the resources, advice and networking opportunities that all members enjoy.
Opportunities Beckon
Clearly there are many factors behind the surge in European and Indonesian busi- ness relations, but EuroCham also praises the Indonesian government for playing their part. Jakob believes that, in the past, co-or- dination between the government and the private sector was somewhat limited, but that the last six years have seen many posi- tive changes. dialogue and consultation processes have greatly improved and the way has been opened to accelerate local growth and International business relation- ships.
Jakob’s advice to businesses consider- ing investment or trade opportunities in Indonesia is to balance recognition of the sound financial prospects with a realistic attitude towards the natural levels of uncer- tainty that can exist within a country that has seen high levels of change and growth in a very short period of time.
The companies entering into Indonesia that have had the most success are those that have been prepared to engage in long- term projects and that have been prepared to adapt when necessary. Be creative, be persistent, enjoy what you do, and you could join the large group of people and businesses that are enjoying highly profit- able relations with Indonesia.
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STRATEGY IndonESIA 2013













































































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