The Indonesian government to provide convenience and attractive policy in the field of foreign direct investment (FDI), the policy is with the Presidential Regulation No. 44 Year 2016. By Presidential Regulation No. 44 Year 2016, is expected to attract more foreign investors who want to invest their capital in Indonesia.

Foreign investment in Indonesia can be done with the establishment of new liability company (PT PMA) in fields that are allowed in the Negative Investment List (DNI) or also by the acquisition of companies in the country that already exists. In the new regulations there are various fields and sectors that can be owned by foreign investors 100%. There are also restrictions that require, or partners with local investors.

For more details on the changes in the new regulations Investment Negative List in 2016, can be viewed HERE. dni-perpres-44-2016

Hopefully useful information for those who will invest in Indonesia by establishing PT PMA, Register Company or Setting Up Company in Indonesia or intent to apply permits or license to Indonesia Investment Board (BKPM).

The government needs to come up with breakthroughs to attract foreign direct investment (FDI), otherwise the country could have insufficient foreign currency inflows to cover the current-account deficit, the central bank has warned.

In the past, the current-account deficit could be supported by a hefty surplus in the capital account, due to the market being flush with liquidity thanks to quantitative easing in the US.

However, the situation may be completely different in the future due to the changing global economic landscape, says Bank Indonesia (BI) Deputy Governor Perry Warjiyo.

“The period of easy money is over,” he said on Monday in a keynote speech at a seminar. “This means that we need to have a better capacity to attract more long-term funds, such as FDI, to finance the shortfall [in the current account].”

Indonesia’s balance of payments — the measurement of an economy’s financial healthiness that takes into account all monetary transactions in and out of the country, which comprises the current account and the capital account — recorded a US$2.6 billion deficit in the third quarter, mainly because of the declining contribution of the capital account.

In the third quarter, the capital account posted only a $4.9 billion surplus, lower than the $8.2 billion recorded a quarter earlier.

Economists say that Indonesia will need a healthy capital account to support the high deficit in the current account, the shortfall of which stood at $8.4 billion in the third quarter, or equivalent to 3.8 percent of gross domestic product (GDP).

Despite its growing importance in the economy, FDI has been easing as investors hold back investing in the country due to regulatory uncertainties ahead of the 2014 election. In the third quarter, year-on-year FDI growth slowed to a three-year low of 18.4 percent to reach Rp 56.6 trillion ($4.8 billion).

In an effort to spur FDI growth, Vice President Boediono announced a policy to streamline processing permits for new businesses and electricity access. Coordinating Economic Minister Hatta Rajasa also announced a plan to revise the negative investments list (DNI) to attract more foreign investment in certain sectors, such as airport and seaport management and pharmaceuticals.

“We need to implement breakthroughs to improve our investment climate. That’s the key to attracting FDI,” said Perry.

Analysts agree with BI, arguing that more FDI should be seen as a credible source of financing ahead of more turbulence in the financial market next year, which might limit the amount of portfolio inflow.

“The equity market will experience pressure next year,” said Maynard Arif, the head of research at DBS Vickers Securities Indonesia.

“Uncertainty over the tapering of the US quantitative easing will still affect short-term sentiment in the market. In addition, our macroeconomy will face more challenges, compared to in the past few years,” he explained.

Portfolio investors have rushed to exit Indonesia’s equity market after the US Federal Reserve first hinted of pulling back its quantitative easing in May.

The Jakarta Composite Index (JCI), which on Monday rose 0.4 percent to close at 4,334.81, fell 16 percent after it touched a historic high of 5,214.98 on May 20.

source : www.thejakartapost.com

How do I set up a FDI or PMA company and procedures ? These question was often asked by several potential foreign investors who want to invest in Indonesia with FDI or PMA facility, but not a few similar questions are also raised by Indonesia’s own people who want to know how and procedures established PT PMA in Indonesia. Refers to the legislation in force relating to the limited liability company and its implementing regulations as well as by the practice that had been the case then we submit the following summary of the ways and procedures in establishing FDI or PMA Company in Indonesia, among others:

First, investors should choose the business that will be run in Indonesia, whether or not the field is allowed to be run by foreigner investors, in other words, whether the field is in the category of negative list or not, what is the maximum limit on foreign ownership of shares, how much capital is needed minimum, where the location is allowed. Those things need to be in check first.

Second, if the business to be run have got the assurance it needs to find a location or project office address for the company. The address can be purchased or rented from the owner’s office, office address can also be temporary or permanent.

Third, to check and book FDI or PMA Company names will be used. Checking the company name of PT PMA must refer to Government Regulation No. 26 of 1998 dated February 4, 1998 about the use of  the Company name  and its amendmen. If the Company name has been approved through Sisminbakum registered, it can proceed with the registration of investment to BKPM,  signing of the notary deed of establishment, apply approval from the ministry of law and Human Rights, apply for business domicile letter, Company Tax Number, and the company registration (TDP).

For further information please contact us.

Indonesia, the largest palm oil producer, may keep the duty on shipments of the crude variety unchanged at 9 percent in March, double the rate in Malaysia.

The March rate will probably be kept unchanged as the reference price is still about $849 a metric ton, Steaven Halim, an official at the Indonesian Palm Oil Association, said in an e-mailed statement. The base price for calculating the levy exporters must pay may climb to $777 a ton from $744, he said.

“Indonesia is still less competitive against Malaysia,” said Hariyanto Wijaya, an analyst at Mandiri Sekuritas in Jakarta. The position is set to “improve slightly compared with this month because the gap will narrow.”

Malaysia, the second-biggest supplier, raised the duty for crude palm exports to 4.5 percent in March from zero in January and February, according to a customs statement posted on the Malaysian Palm Oil Board website on Feb. 15. Indonesia raised the duty to 9 percent this month from 7.5 percent in January.

The Malaysian government said in October it would reduce the export tax from January to drain record stockpiles. Reserves slid 1.9 percent to 2.58 million tons last month from a record 2.63 million tons in December. Indonesia’s inventories will probably shrink 14 percent to 3 million tons this month, according to estimates compiled by Bloomberg.

source : thejakartaglobe

The Jakarta Post, Jakarta | Business | Mon, February 18 2013, 11:15 AM

Paper Edition | Page: 13

Furniture enterprises are preparing a special lot to set up a shared workshop-cum-store in Sukabumi, West Java, aimed at integrating businesses and improving efficiency in the industry.

The Rattan and Furniture Association (AMKRI) chairman, Soenoto, said that the first-ever furniture industry center would be established on a 1,000-hectare lot in Sukabumi. He further added that construction had kicked off last year and was expected to be completed by 2015.
“We will construct the area gradually. We are currently acquiring and building on the first 650 hectares. We are spending around Rp 200 billion [US$20 million] on it,” Soenoto said at a conference recently.
He said that the idea of forming an industry cluster came after the country saw a significant surge in furniture exports due to raw rattan export restrictions stipulated in a ministerial regulation issued in 2011.
Indonesia is the world’s biggest rattan producer and supplies 80 percent of the world’s raw rattan needs, but most of its raw rattan has been exported mainly to China and Taiwan.
Indonesia sold $300 million worth of finished rattan products in 2008, which plunged to $167 million in 2009 and to $138 million by the end of 2010. Despite wide criticism, the government decided to ban the export of raw rattan, opting to focus on the processing industry.
In 2012, according to Trade Ministry data, exports of rattan furniture and handicrafts soared to 26.9 percent and 213.8 percent to $215.7 million and $42.4 million, respectively, compared to those in 2011.

The cluster, which is designed to be the country’s biggest furniture outlet, is expected to help with maintaining the numbers and improving Indonesia’s domestic and international furniture sales.
“China, which is the world’s biggest furniture exporter, has a furniture cluster to produce and promote their products, which is how we learned about the importance of establishing a cluster,” Soenoto explained.

He also added that the cluster was projected to help the association in achieving its $5 billion export target and creating 5 million jobs within the next five years. The association data shows that the furniture industry provides about half a million direct jobs and two million indirect jobs.
He said that the cluster would be managed by PT Cahaya Sakti Furintraco, known for its mass furniture product, Olympic, which first coined the idea.

PT Cahaya Sakti Furintacro’s Au Biantoro told reporters that the center would be equipped with adequate facilities such as schools, housing and hotels, to accommodate workers, and potential buyers and investors.
“We chose Sukabumi for its affordable human resources and available land so we can further cut production costs,” he told reporters in the meeting.
Biantoro said that being a labor intensive sector, furniture businesses were hurt badly by the increased minimum wage applied simultaneously last year, which prompted him to relocate his factory in Sentul, Bogor, where minimum wage was set at Rp 2 million a month.
The minimum wage in Sukabumi is Rp 1.2 million, much lower compared to those in Greater Jakarta (Jakarta, Tangerang, Bekasi, Depok, and Bogor) where minimum wage ranges from Rp 2 million to 2.2 million a month.
“My factory would occupy only around 10 hectares of the lot and the cluster can accommodate up to 300 furniture industries,” Biantoro, who is also an advisor for the furniture association, explained.
“My company will buy and clear the land, but we’ll leave the construction [of workshops and outlets] to each company or investor,” he said. (aml)

The Jakarta Post | Business | Mon, February 18 2013, 11:40 AM

Paper Edition | Page: 13

Indonesia is the partner country for this year’s largest construction and mining equipment trade fair, Bauma 2013, scheduled for April in Munich, Germany. Ahead of the event The Jakarta Post’s Ati Nurbaiti was among the journalists invited to the “media dialogue” with organizers and exhibitors in late January in Munich, Germany. The report follows.
The Alps were the backdrop for a lunch buffet in a venue in Munich, where visitors were welcomed by the red and white flag, along that of Germany and a Bauma banner, fluttering in the wind at the world’s largest trade fair.
“Partner country Indonesia” accompanies all announcements and flyers for Bauma 2013, the construction and mining equipment exhibition slated for April 15 to 21 in Munich’s spring.
A few months ahead of the event there were no other signs of Indonesia’s presence apart from badges stating “Welcome Indonesia”.
An empty space for the country’s pavilion and lounge were already allocated on the massive grounds of the upcoming construction machinery, building material machines, mining machines, construction vehicles and equipment fair, the site covers 555,000 square meters.
Among the thousands of participants, some began erecting their huge pavilion spaces as far back as November. Some pavilions are not just show spaces for the bulldozers, wheel loaders, crawlers or crushers but fabricated multi-story levels and self-contained spaces — all to be dismantled in a few weeks at the end of the exhibit.
Organizers — the trade show firm Messe Muenchen International and Germany’s construction machinery and building materials Machinery Association Federation, (VDMA) — hope that the memorandum of understanding signed in May last year with Public Works Minister Djoko Kirmanto, during a visit to Germany along with collaborations with Indonesia’s main business associations, will ensure strong participation from the construction and mining industries.
“This is an opportunity to be on the world stage, said VDMA’s Joachim Schmid. “We are telling exhibitors not to forget Indonesia.”
The VDMA is the co-organizer of several Bauma events, with Messe Muenchen, the company that focuses on global construction machinery trade fairs. Other events this year will be held in Mumbai, India, in February and Johannesburg, South Africa, this September. Last year Shanghai, China, also hosted a Bauma exhibit.
To promote Indonesia, the tagline “Profit from the world’s largest market” can be seen on flyers and Indonesian delegates will be entitled to free entrance to the exhibit, saving some US$50 per person for the week.
Indonesia will also host a Bauma exhibition in 2014.
Germany’s mining machinery sector exported some 92 percent of products, according to the most recent data, contributing to the country’s survival amid Europe’s downturn, said chairman of the German trade association of mining machinery manufacturers, Paul Rheinlander, as quoted in a Bauma release.
Rising demand for raw materials, especially from the emerging economies, continue to be a promising prospect for Germany’s mining and mining machinery sector. Organizers cite the upcoming soccer 2014 World Cup and the 2016 Olympic Games, both in Brazil, as events that would require intensive infrastructure preparation.
Many business players in Germany and Europe are less aware of Indonesia’s economic strength and potential, said Messe Muenchen’s chief representative and senior executive officer Wolf-Dietrich Mueller, despite its more or less steady economic growth above 6 percent in the past years, and its strong construction sector.
Organizers are aware that the Indonesian government’s plans to invest US$465 billion in infrastructure; oil, coal and gas extraction; and electricity power plants by 2025. The World Bank’s financial arm, the International Financial Corporation (IFC), cites Indonesia’s more conducive regulations for infrastructure investment, such as the land acquisition law.
IFC notes that infrastructure plans should attract joint ventures involving foreign companies, given the vast need for experience, as the government will only fund 30 percent of government projects. Many foreign companies also lack the experience of dealing with the Indonesian business side, thus, these interactions could be facilitated by the trade fair.
New opportunities in mining and mining infrastructure also lie in Indonesia’s expected export ban on mineral ores.
To process minerals the 2009 Law on mining obliges firms to build smelters, though critics say a planned ban on the export of ores by 2014 is far from realistic, given the huge investments and time it takes to build and operate smelters. Nonetheless, companies from South Korea and China were among those that grabbed the opportunity and won bids to building smelters.
Confusing regulations seem insignificant when lined up with the country’s potential; the organizers cite data from the Energy and Mineral Resources Ministry that shows that Indonesia ranks sixth in the world regarding raw material reserves, and 15th in coal.
Bauma notes that total investment in the Indonesian mining sector was around $3.2 billion in 2010, including $764 million in coal. Bauma also cites predictions by a market surveyor, Business Monitor International (BMI), that the value of production in mining will reach $123 billion by 2014.
For those who have heard of Indonesia, some are discouraged by the complaints of doing business in one of the world’s most corrupt nations. It is very difficult for German companies to do business while engaging in corruption, said Schmid.
“However, we tell them that if they don’t try to come to Indonesia, to live there and try to understand the country, they will never know that eventually it might be possible to do business without corruption,” Schmid said.
Among the exhibitors were those with long time Indonesian clients, and others said they were considering the country.
The last exhibition was hosted by China last year, with exhibitors and guests confident of the economy despite the drop in world coal prices and decreasing demand from China.
Overall political stability is clearly a primary factor of trade fair organizers linking business players with markets and potential joint venture partners in China, India, Indonesia, the Gulf countries and Africa’s sub-Sahara.
Despite Indonesia’s political uncertainties ahead of the 2014 general election, continuing reports of large scale corruption involving big business players and confusing regulations, the appeal of Indonesia’s market and further potentials is “definitely worth the risk”, said Daniel Bergquist, a representative from Scania, a long time partner of Indonesian mining businesses.
At Scania, a Sweden-based corporation, a new organization is being set up under the group for a consultancy for mining, particularly on how industries might best save costs, apart from Scania’s current business of selling equipment. These services are essential to newcomers in the industry and newcomers to countries like Indonesia, Bergquist said.

 

Bill (the Bill) about immigration by President to the Leadership Council of Representatives (DPR), the Republic of Indonesia(RI) with Number R-16/Pres/2/2010 letter dated February 23, 2010. In the letter, submitted that the Immigration bill is a submission of a second time, having previously been delivered by the President via letter No. R.18/Pres/10/2005 October 12, 2005. The president appoints the Minister of Justice and Human Rights to represent the President in the discussion of Bill (the Bill) is in the House of Representatives (DPR).

 

  1. Preventing abuse of authority;
  2. Bureaucratic reform and public services that are effective, efficient and legal certainty;
  3. Update the implementation of immigration functions and management information system based immigration;
  4. Modernize its approach to security with respect for human rights;
  5. Promote public welfare by supporting increased investment, tourism and social relationships as well as nurturing the culture of Indonesia in international relationship.
  6. Through in-depth discussion in working sessions and meetings Panja, drafting team and the team synchronization, finally managed to reach an agreement and formulated material in accordance with the Immigration Bill a new paradigm in a systematic way more clearly, so that in the end the discussion of Bill (the Bill) may Immigration resolved.

Bill (the Bill) Immigration agreed at the discussion level I have been formulating various updates, including:

  • Leading Sector immigration functions that have been placed in the Ministry of Justice and Human Rights;
  • Organization of the Directorate General of Immigration is autonomous;
  • Implementation of Management Information Systems Immigration Immigration as supporting the implementation of functions with the tools and information and communication technology applications;
  • The assertion that every Indonesian citizen can not be refused admission to the territory of Indonesia;
  • Sterilization arrangement in every area of Immigration Immigration Check at airports, seaports, and border posts;
  • Foreign Minister delegated to regulate matters relating to passports, visas and residence permits for diplomatic and official duties;
  • Visa arrangement giving a clearer purpose and subject
  • Setting permanent residence permit granted for an unlimited time while still having the obligation to report to the Immigration Office every 5 (five) years with no charge;
  • Ease of former Indonesian citizen and former child the subject of dual nationality of the Republic of Indonesia to have a Permanent Stay Permit;
  • Convenient to holders of Limited Stay Permit and Permanent Residency through marriage mix to do the job and / or effort to make ends meet and / or his family;
  • Setting the guarantor as the party responsible for the existence and activities of foreigners during their stay in the territory of Indonesia;
  • Expanding perspectives on immigration control that is based surveillance data and information, which includes field supervision team Abdan or supervision of relevant government institutions, and strengthening the intelligence function Immigration;
  • Immigration administrative action as one of the processes of law enforcement outside the judicial system;
  • The house and room where the placement of temporary detention as to foreigners who violate laws and victims of human trafficking and smuggling;
  • Preventive and repressive authority of the Minister of Justice and Human Rights in the handling of human trafficking and smuggling;
  • Prevention in the urgent circumstances in which the authorized officer may request directly to the Immigration officials at the Immigration Examination Venue;
  • PPNS Immigration is authorized as a criminal investigator Immigration;
  • Criminal provisions regulating the criminalization of the person in charge of transport equipment, underwriters, trustees, or responsible for lodging, perpetrators of human trafficking and smuggling, and storage makers and users a false immigration document, false marriages actors, deteni and immigration officials or other officials who misuse authority and not carry out duties in accordance with procedures; and
  • Improving the quality of Human Resources Immigration minimal participant special education degree.

 

In this regard, the Commission III of the House of Representatives (DPR) approved for Bill (the Bill) on Immigration proceed to Level II Discussion / Decision Making, in order to obtain mutual consent of the Board of Representatives (DPR) and the President of the Legislative Assembly Meeting (DPR), the Republic of Indonesia (RI) on Thursday, April 7th, 2011 ago.

 

In Critical Issues Seminar held at the Park Hotel 1 December, it conveyed exposure on critical issues related to the implementation of the accelerated program (quick wins) in the phases of the program strategic direction DGI Bureaucratic Reform. Based on Act No. 17 of 2007 on the National Long Term Development Plan 2005-2025, Vision Indonesia national development is an independent, advanced, just, and prosperous that can be achieved either by development of the state apparatus through Reforms to improve the professionalism of the state apparatus and to realize good governance, both at central and local levels in order to be able to support the successful development in other fields. In addition, according to Presidential Decree No. 5 of 2010 concerning RPJMN 2010-2014, Indonesia Vision 2014 is “The Prosperous Indonesia, Democratic, and Justice”. This vision is realized through 5 national development agenda 2010-2014, among which are: Economic Development and Improvement of Welfare Improvement of Local Governance, Enforcement Pillar of Democracy, Law Enforcement And Anti-Corruption, Development All Inclusive And Justice. The regulation also mentioned that the Bureaucratic Reform and Governance Improvement Government became the first priority of the 11 national priority of United Indonesia Cabinet II. From both a legal basis, it can be seen the urgency of the implementation of the Reforms to the development of the state apparatus into a better direction, so as to formulate strategy and direction of development policy nasional.Apa actually meaning Bureaucratic Reform? Bureaucracy Reform is a major change in paradigm and governance of Indonesia and the big gamble for the Indonesian people in facing the challenges of the 21st century because if successful, the abuse of public authority can diminimalisair and eventually can be eliminated, other than that Indonesia could have the most-improved bureaucracy, quality of service to the community and the quality of the formulation and implementation of policies / programs the agency may be increased, and the Indonesian bureaucracy that anticipatory, proactive, and effective can be realized. But if it fails, Bureaucratic Reform will only lead to the inability of the bureaucracy in the face of complexity that moves exponentially in the 21st century, resentment, trauma, loss of public trust in government, and the threat of failure to achieve good governance (good governance), and even hamper the success of development national. Bureaucracy Reform is also associated with thousands of processes overlap (overlapping) antarfungsi-governmental functions, involving millions of employees, and spend the budget is not small. It is also an effort to rearrange the bureaucratic process from the highest to the lowest level and made a breakthrough with gradual steps, concrete, realistic, really, to think out of the ordinary / routine that is, paradigm shift, and with extraordinary effort. And efforts to revise and establish various regulations, modernize the policies and practices of central and local government management, and adjusting the functions of government agencies with the task paradigm and new roles.

Global Credit Research – 01 Dec 2010

Singapore,  – Moody’s Investors Service has  placed on review for upgrade the Indonesian government’s Ba2 foreign and local-currency bond ratings.

The main reasons for the decision are:

(1)      Indonesia’s economic resilience is accompanied by sustained macroeconomic balance;

(2)     The government’s debt position and the central bank’s foreign currency reserve adequacy are improving; and

(3)     the economic policy framework remains increasingly well positioned to deal with evolving macroeconomic challenges and potential shocks.

The rating review also applies to Indonesia’s Ba1 country ceiling for foreign currency (FC) bonds and Ba3 ceiling for FC bank deposits. The country ceiling for short-term FC debt is “Not Prime” and remains unaffected by this action.

These ceilings act as a cap on ratings that can be assigned to the foreign currency obligations of other entities domiciled in the country.

RATIONALE FOR THE REVIEW FOR POSSIBLE UPGRADE:

Moody’s had placed Indonesia’s Ba2 sovereign ratings on positive outlook in June 2010, after a one-notch upgrade in September 2009, on account of the country’s resilience to the global financial crisis, improving government credit-metrics, and its ability to manage domestic political challenges to the reform agenda without damaging key policy institutions’ credibility or effectiveness.

“We have now placed the sovereign credit ratings and country ceilings on ‘Review for Possible Upgrade’ as the economic recovery is being sustained alongside well managed external accounts and reasonably good inflation fundamentals,” said Mr. Aninda Mitra, a Vice-President at Moody’s and its lead sovereign analyst for Indonesia.

“Moreover, the recent improvement in Bank Indonesia’s foreign currency reserve position coupled with continuing reduction in the government’s debt burden are reducing risk perceptions and encouraging greater inflows of foreign direct investment and long-term capital,” he added.

“Additionally, amidst growing inflows of foreign portfolio investment, monetary stability alongside ongoing policy flexibility are enabling Indonesian authorities’ to gradually deepen money markets and heighten financial absorption capabilities,” says Mr. Mitra.

RISKS TO THE RATING AND ECONOMIC OUTLOOK

Moody’s considers key risks to the rating outlook to be embedded in the country’s political system.

Opposition from coalition partners have slowed the government’s drive to institute economic reforms, however, this has not yet impacted overall policy management capabilities or near-term economic prospects.

Indonesia’s banking sector prudential ratios are well positioned. However, if bank supervision is constrained by political interference or poor governance, the risk of a shock to the real economy or to the government’s contingent liabilities could rise.

CREDIT TRIGGERS FOR A POSSIBLE UPGRADE:

These would include assessments during the review of whether:

(1)      market deepening prospects and the ongoing development of the domestic institutional investor base will continue to lend more stability to the government’s onshore debt “finance-ability”;

(2)     ongoing monetary management will continue to anchor medium-term inflation expectations as well as investor confidence amidst lingering global financial market uncertainty –derived from, but not limited to, quantitative easing in the U.S. and Japan, banking and sovereign debt problems in the Eurozone; and

(3)     the durability of the greatly strengthened balance of payments and external payments position.

PREVIOUS RATING ACTION & METHODOLOGY

Moody’s last rating action on Indonesia was on June 21, 2010 at which time the outlook on the Ba2 sovereign rating was shifted to positive, from stable.

The principal methodology used in rating the government of the Republic of Indonesia is “Moody’s Sovereign Bond Methodology”, published in September 2008, which can be found at www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Rating Methodologies sub-directory on Moody’s website.

http://www.bi.go.id/web/en/Publikasi/Investor+Relation+Unit/Highlight+News/Sovereign+Rating.htm

Singapore

Aninda S. Mitra

Vice President – Senior Analyst

Sovereign Risk Group

Moody’s Investors Service Singapore Pte. Ltd.

JOURNALISTS: (852) 3758 -1350

SUBSCRIBERS: (65) 6398-8308

Singapore

Thomas J. Byrne

Senior Vice President – Regional Credit Officer

Sovereign Risk Group

Moody’s Investors Service Singapore Pte. Ltd.

JOURNALISTS: (852) 3758 -1350

SUBSCRIBERS: (65) 6398-8308

Moody’s Investors Service Singapore Pte. Ltd.

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© 2010 Moody’s Investors Service, Inc. and/or its licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

Nani Afrida, The Jakarta Post,

Jakarta -The Indonesian Chamber of Commerce and Industry (KADIN) and five European business chambers launched the 2-day EU-Indonesia Business Dialogue in Jakarta on Monday to boost trade and investment.

Indonesia and the EU were strategic partners that shared complementary economic interests, Coordinating Minister for the Economy Hatta Rajasa said on Monday.

Senior EU trade relations official Rupert Schlegelmilch said that the EU was Indonesia’s second largest export partner.

“The EU is also a [foreign direct investment] source for Indonesia with around 50 billion euro ($US66.19 billion) and over 700 European companies in the country,” he said.

Leaders of Indonesia companies will meet high-level representatives from European companies to discuss strategic business during the conference.