INDONESIA, ITALY AGREE TO ENHANCE ECONOMIC COOPERATION
Jakarta (ANTARA News) - The Indonesian Coordinating Minister for Economy, Darmin Nasution met with the Economic Development Minister of Italy Carlo Calenda to establish an agreement of increasing economic cooperation.
"I hope his visit will strengthen the bilateral cooperation between Indonesia and Italy, particularly in the fields of economy, trade and investment," Nasution noted here on Tuesday.
Italy is considered as one of the important partners for Indonesia as Darmin believes that economic cooperation between the two countries will increase.
However, data from the Ministry of Trade in 2016 shows the total value of bilateral trade between Indonesia and Italy US$3 billion, or 8.6 percent less than the amount of the previous year that reached US$3.2 billion.
In terms of trade, Indonesias main commodities that have been exported to Italy are coal, crude palm oil (CPO), footwear, rubber, coffee, recording equipment, furniture, garment, and pulp paper.
Meanwhile, the country imports washing machines, tubes and pipes, recycled paper and cardboard, machinery and mechanical equipment, leather products, automotive parts and products as well as textile machinery from Italy.
The Investment Coordinating Board (BKPM) recorded the investment of Italy to Indonesia in 2016 was only US$26 million, consisting of 169 projects.
In the first quarter of 2017, Italy ranks in the 25th position on the foreign investment rate with investment value of US$11.34 million.
On another location, President of Associazione Italia-Association of Southeast Asian Nations (Italy-ASEAN Association) Enrico Letta is targeting a 10 percent increase in investment in Indonesia.
"We expect to increase investment by at least 10 percent this year. Our focus is on the aviation, infrastructure, food processing, energy, and pharmaceuticals (sectors)," Former Italian prime minister Letta stated on the sidelines of the High-Level Dialogue on ASEAN-Italy Economic Relations here on Tuesday.
He admitted that Italian investment in Indonesia is small since the countrys companies lack information on investment opportunities in Indonesia.
To explore investment opportunities in Indonesia, the European House-Ambrosetti held the High-Level Dialogue on ASEAN-Italy Economic Relations in Jakarta.
"Some 450 companies from Italy have invested in Southeast Asia. The companies are ready to increase their investment in Indonesia," he remarked.
Letta pointed out that Italian trade and investment cooperation in Indonesia has huge potential.