Bilateral trade a priority as China’s President visits Jakarta

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Chinese President Xi Jinping will be the second state leader to visit Jakarta this week. Many are looking to see how the leaders of the world’s second largest economy and Southeast Asia’s largest economy can collaborate to cement Asia’s position as the world’s engine of growth.

Trade between the Indonesian archipelago and China dates back to the 7th century and it is trade that still serves as a cornerstone of Sino-Indonesian ties centuries later.

Chinese President Xi Jinping’s visit is seen as an important moment to further enhance each other’s economic prospects.

Makmur Keliat, head of international relations of the graduate programme at the University of Indonesia, said: “If something happens with Indonesia in terms of our economic performance, then it will also affect China. And the same is true also if the economy in China declines then it would affect Indonesian economy.

“I think the key to our bilateral economic relationship actually is in our growth — both China and Indonesia.”

In recent years, both countries have recorded impressive economic growth despite a slowdown in the global economy, and China is Indonesia’s largest trading partner. Bilateral trade more than doubled from US$26.6 billion in 2009 to US$66.6 billion in 2012, and is expected to reach 80 billion US dollars by 2015.

Indonesia, for the most part, imports equipment and machinery from China, while China imports Indonesia’s natural resources.

Despite being such a large trading partner, China’s investment in Indonesia is only US$2.2 billion — almost half of what Indonesia invests in China.

Tantowi Yahya, a legislator with Golkar, said: “Why is a big and important country like China putting so little investment in us? Why? This is what needs to be answered by us, by the President, honestly.

“Probably it’s because of the many obstacles that foreign investors face here from time to time. Something like uncertainty in law, the infrastructure, electricity. This is what has to be answered and find a solution.”

Indonesia’s ambassador to China with the Investment Coordinating Board aims to make China its fifth largest investor. He has met many of the country’s top 500 companies, and that one-on-one business and investment dialogue with Chinese investors is paying dividends.

Whilst in Indonesia, President Xi is expected to oversee the signing of US$20 billion of trade deals, including a joint venture to develop the Jakarta monorail system. Indonesian officials are also looking into extending their bilateral currency swap agreement with China to boost the rupiah, which has been substantially weakened.

During his visit, President Xi will also be making a special appearance before Parliament. President Xi Jinping will deliver a special address in front of Parliament — a rare honour and a first for a visiting Chinese politician.

 

 

Source : Channel News Asia | October 1, 2013

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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