The Ministry Of Trade Invites Norway To Increase Investment In Indonesia

Illustration. (Photo: Unsplash)

JAKARTA - The government, through the Ministry of Trade, invites the Norwegian government and entrepreneurs to increase the value of trade and invest in Indonesia. This was conveyed by Deputy Minister of Trade Jerry Sambuaga at the Enhancing Indonesia-Norway Trade and Investment Cooperation seminar in Oslo, Norway.

Jerry stated that the invitation for cooperation could be carried out bilaterally or within the framework of the Indonesia-EFTA Comprehensive Economic Partnership Agreement (IE-CEPA).

“The Indonesian government plans to create a competitive and open economic climate, both in terms of trade and investment. With mutually beneficial cooperation, it is hoped that the economies of the two countries will grow, "he said in a written statement, Friday, January 31.

The Ministry of Trade noted that the total value of trade between Indonesia and Norway in 2018 reached US $ 24.13 million. Meanwhile, from the investment side, the capital invested by Norwegian investors in Indonesia for the 2014–2018 period reached US $ 40.2 million.

The IE-CEPA trade agreement is projected to be able to increase Indonesia's exports to member countries of the European Free Trade Association (EFTA), in which Norway is included. In later implementation, Norway will provide exemption for 6,333 tariff posts or the equivalent of 90.97 percent of the total tariff posts and 99.75 percent of the value of Norwegian imports from Indonesia.

Meanwhile, the potential value of Indonesian exports of goods to EFTA member countries could increase to US $ 1.92 billion in the next five years. Exports in the service sector are also expected to grow by 1.15 percent due to the opening of service market access to 91 sub-sectors in Norway.

Investment by EFTA member countries to Indonesia is estimated to grow by 0.02 percent. The government opens cooperation and investment in the agriculture, fishery, mining, manufacturing, electricity, gas, and clean water sectors for investors from EFTA member countries.

"In the framework of IE-CEPA, Indonesia and Norway will develop partnerships in the capacity building sector in the fisheries sector, aquatic ecosystems (ponds) and marine products," said Jerry.

Norway is known to have experience in managing marine and fisheries resources, while Indonesia has rich marine and fishery resources.

Indonesia and EFTA member countries signed the IE-CEPA agreement in December 2018. However, its implementation is still waiting for the ratification process of each country listed in the agreement.

"The Indonesian government is currently communicating intensively with the parliament so that the ratification process will be completed by the end of January and can be implemented in the first half of this year," he said. He also hoped that the ratification process in EFTA member countries could be completed soon.