Less EU Investment Aimed at Indonesia
"Our entrepreneurs could lose market share in the EU, compared to China and Vietnam"
VIVAnews - Vice-Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) of Investment Division, Peter F. Gontha, said Indonesian entrepreneurs could lose market share in the European Union under tight competition with China and Vietnam.
Kadin also viewed that to a degree, Indonesia is less eyed by European investors taking into account the small portion of European investors and the European Union members in the country compared to other ASEAN members.
"Our entrepreneurs could lose market share in the EU, compared to China and Vietnam," said Peter Gontha in Jakarta on Tuesday.
Gontha emphasized Indonesia's exclusion from the European markets if it fails to establish more comprehensive economic partnership with the European Union. In fact, other countries have aggressively set up cooperation.
Not only losing the markets, Gontha also stresses a relatively small investment put in by European investors. Of the total European investment in 2010 which amounted to US$200 billion in Southeast Asia, Indonesia could only gain US$15 billion, or 10 percent.
"This is small compared to Malaysia, which hit US$27 billion or 13 percent of European investment," said Gontha.
Vision Group Chairman cum Centre for Strategic and International Studies (CSIS) economist, Djisman Simanjuntak, said Indonesia’s cooperative relations with Europe is deemed healthy. “It's called thin healthy, so to speak," he said.
European Union Ambassador to Indonesia Julian Wilson said the EU’s trade and investment in Indonesia and vice versa are still considered very small when compared with Asian countries and other ASEAN members.
"The trade relation with Singapore is three times larger than Indonesia's trade relations with the EU," said Wilson.
In fact, smaller countries, Wilson went on, have bigger trade relations than Indonesia does. He cited Singapore that has a total trade amounting to 42.59 billion euros or 1.5 percent of the total EU’s trade. Singapore is at the 12th rank.
The value of Indonesia's trade to Europe is also less than that of Taiwan, which is at the 14th position, as well as Malaysia and Thailand, at 22nd and 24th position respectively. "Indonesia’s rank is only 32nd with 20.04 billion euros or 0.7 percent of the total trade in Europe," said Wilson.
"Indonesia has huge potentials. I think it is not suitable if Malaysia has a higher value of investment when compared to Indonesia. Logically speaking, Indonesia can (have higher investment)," he said.
The value of EU’s investment in Malaysia reaches US$5 billion. Meanwhile, EU’s investments in Indonesia is only US$3 billion of the total EU’s investment in ASEAN at US$35 billion.
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