Friday, 22nd August 2014

Indonesia to increase economic partnership with Denmark

Selasa, 5 Maret 2013 20:51 WIB | 1.212 Views
Indonesia to increase economic partnership with Denmark
Hatta Rajasa. (ANTARA/Wahyu Putro A.)
Jakarta (ANTARA News) - Indonesia`s Coordinating Minister for Economic Affairs Hatta Rajasa said the government would boost economic partnership with Denmark by increasing the volume of investment and trade with that country.

"We have agreed to increase the volume of investment and trade," he said after receiving Danish Minister of Trade and Investment Pia Olsen Dyhr here on Tuesday.

Hatta said they had discussed development of the two countries` bilateral relations especially in the field of economy and possibilities for Denmark`s involvement in the country`s priority projects under the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI).

He said during the meeting Denmark has offered cooperation in the development of more efficient and effective environment-friendly technology to deal with climate change in Indonesia.

"Denmark is an expert in the field and a champion in global climate change affairs. We meanwhile also have commitment with regard to climate change. So, there are a lot of areas in which we can cooperate with," he said.

Hatta hoped investment and trade would increase within the next five years in view of the two countries` long relationship.

"We hope the trade volume would double in the next few years. We would also use Denmark to market our products to Europe," he added.

Pia Olsen Dyhr meanwhile said the two countries` partnership could be increased among others through Danish companies` investment in green technology-based infrastructure development projects.

"Our companies have expertise in ports development using green technological elements. We have knowledge that we can share to make Indonesia able to develop energy-efficient infrastructure," he said.

In the past five years total trade between the two countries grew at an average of 14.74 percent a year.

In 2011 the two countries` total trade reached US$426.4 million up from US$348.6 million in 2010.

Indonesia enjoyed a surplus of US$73.9 million in its trade with Denmark in 2011.

The country`s main export commodities include palm oil, forest products, forestry products, tobacco and iron/steel while its imports from Denmark include pharmaceutical products, chemical products, machinery, electrical appliances, meat, milk products and fish.

Denmark`s investment in Indonesia from January 1, 1990 to the middle of 2006, according to the Investment Coordinating Board, was recorded at US$50.1 million in 21 projects.

From 2008 to 2012 its investment reached US$2.6 million spreading in 13 projects.

In 2012 the realization of Denmark`s investment only reached US$100,000 in three projects.

Denmark`s big companies that are operating in the country include shipping company AP Moller/Maersk Line and international shoe maker ECCO.

(Reporting by Satyagraha, editing by Yoseph Hariyadi)