Italian and Indonesian Business Chambers signed MoU on Trade and Investment

BSD News, 20 May 2016

The Indonesian Chamber of Commerce and Industry (KADIN Indonesia) and the Italian Business Association IBAI signed a MoU to boost trade and investment. The event took place on the 27thApril at the Italian Cultural Center. Similar agreement was signed in May 2014.

The Italian Ambassador to Indonesia Vittorio Sandalli opened the meeting with the words “My mandate is dedicated on economic promotion and I will do everything in my power to support business relationships between the two countries”. He highlighted that KADIN’s Chairman is one of the biggest investors in Italy and the owner of the charismatic Inter Milan. IBAI has 60 member companies and represents their interests in Indonesia, furthermore the collaboration with KADIN Indonesia gives an ultimate partner to approach governmental institutions.

          This meeting was timed with the recently revitalized Comprehensive European Partnership Agreement (CEPA) which further advances the bilateral trade agreements between Indonesia and EU member states. Between 2011 and 2015 the Indonesian annual growth in value imports to Italy plunged with 10%, thus the EU CEPA is vital to Indonesian economy.

Roeslani said that past trade initiatives with the EU has been stifled since 2009 and finally under the new administration and the strong leadership by KADIN Vice Chairman for International Relations Shinta Widjaja Kamdani, the success of CEPA is secured.

Roeslani reminded the audience that the revised negative investment list gives an opportunity for foreign investment in additional 24 sectors which is also supported by simplified licensing systems. He as well pointed that the biggest pain point of Indonesian business development is infrastructure which requires USD $ 450 Billion investment. With in-house availability of just USD $ 110 Billion, this opens the doors to a wide spectrum of foreign direct investment. In addition, to boost Indonesian competitiveness, Italian businesses can be insightful to their Indonesian counterparts with their creativity attributes and quality products and services.

Kamdani welcomed this initiative but also stressed “the difficult part is how to execute this agreement”. She pledged to the present businessmen that KADIN “can assure that business can be developed and not put on hold”. (EK)