A high level delegation from Indonesia recently visited the Department of Economic Development (DED) in Dubai and held extensive discussions on enhancing bilateral co-operation in the trade and investment sectors. The delegation, led by HE Mansyur Pangeran, Indonesian Consul General in Dubai, met with senior DED officials including His Excellency Sami Al Qamzi, Director General, and exchanged views on investment opportunities and ways to expedite UAE investment projects in Indonesia.
The Indonesian Consul General noted that the trade balance between Indonesia and the UAE was around USD 1.9 million in 2011 while UAE investment in Indonesia reached USD 25.1 million, adding that both the numbers do not reflect the actual potential in the respective areas. The two sides also highlighted the importance of institutional cooperation on exchange of business visits and best-practices as well as information on laws, regulations, and opportunities on trade, tourism, investment and services (TTIS).
The Indonesian delegation explained the new laws and regulations restricting export of raw material from Indonesia, particularly in the mining and agriculture commodities sectors. According to the law, Indonesian government encourages downstream industries to produce value-added export products, such as coal briquette, gold jewelry, furniture (rattan or wood), canned fruits, etc. These industries will remain open to long term foreign direct investment and provide more job opportunities for local communities.
DED officials were also briefed on the Master Plan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011-2025 Programme, endorsed by President Soesilo Bambang Yudhoyono in May 2011. Improving the investment climate in Indonesia through de-bottlenecking, regulations, incentives and the acceleration of infrastructure development is one of the main targets in the MP3EI.
MP3EI has eight main programmes and 22 main economic activities. In addition, six economic corridors (Sumatra, Java, Bali and Nusa Tenggara, Kalimantan, Sulawesi and Papua) are identified as growth centres and are expected to boost economic development throughout the nation. Investors and businesses can choose their desired sectors and preferred regions according to their business specialisation.
“Indonesia and Dubai have great significance in global trade as strategic gateways to their respective regions. Indonesia’s commendable economic performance during the global downturn phase has especially been a major draw for businesses looking for an efficient hub to service the lucrative ASEAN market. Investors in the UAE will be interested in expanding their presence in Indonesia,” said Al Qamzi.
“Meanwhile, Indonesian SMEs can make use of DED’s initiatives to promote business and entrepreneurship to market Indonesian franchise brands in Dubai and the GCC,” Al Qamzi added.
DED has also agreed to forward information on the MP3EI programme and potential investment opportunities in Indonesia to its member database, which includes thousands of registered companies.
Before joining SME Advisor, I worked as a producer/reporter for Forbes Media in New York. I obtained a Bachelor’s degree in Journalism and International Studies at the University of South Florida in the US. I am currently in Dubai working as Sub-Editor for SME Advisor Middle East, which is a business magazine published by CPI. You can follow me on Twitter: @joumanasaad or @SMEadvisorME and (Joumana Saad) or (SME Advisor) on LinkedIn.