Indonesia, Australia increase business cooperation

Indonesian President Joko Widodo (Jokowi) is on a two-day state visit to Australia to increase business relations between the two countries.

Jokowi and his entourage landed at the Kingsford-Smith Airport in Sydney at 6:57 a.m. local time, or 2:57 a.m. Western Indonesia Standard Time (WIB) on Saturday (Feb. 25), after a nearly six-hour flight from Denpasar, Bali.

According to the Press, Media and Information Bureau Chief of the Presidential Secretariat, Bey Machmudin, the main agenda of Jokowis visit was to increase relations between both nations.

According to the agenda, the president on the first day of his visit was to receive the Premier of New South Wales, Gladys Berejiklian, who paid a courtesy call on him, and to hold a meeting with the Australian business circles.

"Indonesias investment rating has shown progress," Jokowi remarked during the meeting with the chief executive officers of Australian companies at the Shangri-La Hotel.

The president pointed out that the confidence index in Indonesia had also shown a positive trend.

New South Wales (NSW) has an important meaning for Indonesia, because some 41,435 of the 68 thousand Indonesian citizens in Australia are staying in NSW.

There are 20 thousand Indonesian students in Australia, half of who live in NSW.

"With NSW, the Indonesia-Australia trade will also be significant," Retno remarked.

After the business meeting, Australian Prime Minister Malcolm Turnbul and wife Lucy Turnbull hosted a dinner party for Jokowi and his wife Iriana Joko Widodo.

According to Retno, Jokowi held a business meeting in Sydney on Saturday with 13 major Australian investors.

"Today, the president has begun his state visit and has held a business meeting with 13 major business players in mining, hospitality, and other fields," Retno stated.

Head of the Indonesian Capital Investment Coordinating Board (BKPM), Thomas Lembong, said that Jokowi briefed a number of Australian investors and discussed issues of cooperation, including in the mining and the tourism sectors. 

"There were approximately 10 companies and two associations, accompanied by a number of representatives from the Australian government. The discussion included mining, especially gold," Lembong said.

The investment value in the gold mining sector totaled about Rp7 to Rp13 trillion rupiah The BKPM asserted that the gold mining sector is currently a good foreign exchange contributor.

BKPM targets Australias investment in Indonesia at US$3 billion, or Rp39 trillion in the next 3 to 5 years.

Retno noted that during the meeting with the 13 Australian business players, the president heard the upward trend of confidence on the part of investors on the Indonesian business climate.

According to the minister, one of the investors directly conveyed their expression of confidence (in the business climate in Indonesia.)

Last year, they conducted a survey and found that Indonesia was among the top five countries that won the trust of investors and was given priority for their business expansion.

"I think it is very good if we are in the top five positions of the Australian business players in Indonesia," he added. In the meeting, the investors expressed their commitment to create business expansion in Indonesia in the coming years. 

Regarding the tourism sector, Lembong said Australia was a nation with strong maritime spirit. "Australia is very strong, and it has a strong culture. The people are keen on spending their leisure time on ships," he noted. 

The investment coordinating board head noted that there are a number of Australian companies currently building marinas in Lombok and Rajaampat (two tourist destinations), aimed at expanding Indonesias tourism sector. 

Although Australias investment in Indonesias tourism sector is not significant yet, he believed that the construction of the marinas can create new investments in a number of tourist destinations. 

The other priority to be discussed during the visit is the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Negotiations of the IA-CEPA) is expected to be in 2017. "The trade minister is also involved. Indonesian and Australian delegations have met in Canberra," Lembong asserted.

The Indonesian delegation will report to Trade Minister Enggartiasto Lukita regarding the progress of the discussion. 

"So far, we have the target to complete the IA-CEPA negotiations this year. We want the agreement to cover as much sectors as possible," he remarked. 

Meanwhile, Retno said that the sixth meeting of IA-CEPA negotiations had been held on Friday, Feb 24. "IA-CEPA is Widodos main agenda in his visit to Australia. I have also met Australias shadow Foreign Minister Penny Wong and discussed about the IA-CEPA," she stated

Source: ANTARA