Jakarta, April 6 (Antara) - Indonesia and Afghanistan are countries rich in economic potentials but their bilateral trade value is still small, with value declining last year compared to the previous year.
The Indonesian Chamber of Commerce and Industry (Kadin) noted that the value of bilateral trade between Indonesia and Afghanistan had declined from US$36.6 million in 2015 to $16.25 million in 2016. Although the trade surplus was in favor of Indonesia, the trade value was still considered low.
Hence, this week's two-day (April 5 and 6) visit by Afghanistan President Ashraf Ghani to Indonesia is the best opportunity for both nations to explore mutual potentials and to further increase bilateral economic cooperation.
According to Indonesian Ambassador to Afghanistan Arief Rahman, as a trade destination country, Afghanistan offers opportunities in various fields. Its natural resources such as large iron ore deposits, copper reserves, and precious stones are potentials for Indonesian investment.
"Besides that, there are still many others, such as transmission lines, which are still open wide for investment," Rahman remarked on Thursday.
Moreover, Afghanistan is a hub country in Central Asia, which connects Eastern and Southern Asian countries.
In the meantime, Indonesia also has the potentials in infrastructure projects, food and beverage, as well as manufacturing industry to offer to Afghan business players. Indonesia is one of the 10 best manufacturing industry countries in the world. Manufacturing industry will still be the key to the economic growth of Indonesia in future.
Therefore, the governments of Indonesia and Afghanistan have discussed potential areas of investment and economic cooperation between the two countries at a business dialog in Jakarta on Thursday.
"Indonesia, which is rich in natural resources, has the largest market in Southeast Asia. Indonesia can also become the gateway to countries in the Association of Southeast Asian Nations," Kadin Chairman Rosan Roeslani noted in his speech during the Indonesia-Afghanistan Business Dialog event.
During the business dialog, Indonesian Industry Minister Airlangga Hartarto offered investment cooperation in the manufacturing industry to Afghan businessmen.
"Manufacturing and service industries are keys to Indonesia's growth and contribute 30 percent to the country's total growth domestic product in 2016," the minister stated.
According to Hartarto, non-oil manufacturing industry cooperation, which has the potential to be increased, included food and beverage, as well as chemical substances and pharmacy.
Indonesia, the minister said, will strengthen investment and trade cooperation in the future, because Afghanistan is Indonesia's trade partner in Central Asia. Indonesia offers cooperation in a number of sectors, such as infrastructure development, mining exploration, textiles, construction materials, two-wheel motor vehicles, ships, and airplanes.
"Indonesia can produce models in accordance with the need of Afghanistan," Hartarto noted.
The minister also asked Afghan businesses to take advantage of the widely open investment opportunities in Indonesia, such as in the fields of logistics and infrastructure.
"Through this dialog, the business world of the two countries could mutually understand their respective cooperation potentials and increase cooperation to boost the economic growth of the two nations," Hartarto asserted.
The dialog was attended by Afghanistan President Ashraf Ghani, Indonesian Deputy Foreign Minister AM Fachir, Kadin Chairman Rosan Roeslani, Afghanistan Ambassador to Indonesia Roya Rahmani, and Indonesian Ambassador to Afghanistan Arief Rahman.
In the meantime, Kadin Chairman for International Relations Shinta Widjaja Kamdani noted during the dialog, Indonesian businesses have opportunities to do business in the infrastructure sector in Afghanistan, which is currently developing that sector.
She said that within the next few years, Afghanistan will become a market for Indonesian products and services. "Several projects that Afghanistan are and will develop are the TAT railway line spanning 645 kilometers (km) in length, the Chaman-Kandahar rail line stretching 98 km, and the Herat-Torghondi line running 150 km, among others. This is an opportunity for Indonesian businessmen in the infrastructure sector or its derivatives," Kamdani stated.
The Kadin leader said it is worth taking into consideration the economic growth in Afghanistan, which is emerging from the shackles of war, let alone its strategic location at the hub among the Gulf countries, South Asia, East Asia, and Europe.
Afghanistan is currently focusing on developing energy infrastructure to position itself as the energy hub of the Central Asian region.
The development of energy infrastructure includes new and renewable energy, such as hydroelectric, solar, gas, wind, biomass, and geothermal power plants.
"They have some potential locations for the development of energy infrastructure including a 23 thousand-megawatt hydropower plant. They want to develop a gas power plant as well as to utilize other forms of renewable energy, such as wind, solar, biomass, and geothermal," Kamdani revealed.
Afghanistan's investment in Indonesia during the 2015-2016 period, though relatively small, showed a rising trend. Afghanistan's investment worth $9.6 million in 2015 was spread across six projects and increased to $12.3 million in 40 projects in 2016.
Kadin has expressed hope that Afghan President Muhammad Ashraf Ghani's visit to Indonesia would offer a major boost to intensify economic and business relations between both nations.
Kadin General Chairman Rosan P. Roeslani said that in the near future, entrepreneurs, who are members of Kadin, along with the relevant ministries, will undertake a business visit to Afghanistan to know the real situation in the country.
The Indonesian-Afghanistan Business Forum was attended by 100 businessmen from both countries. Indonesia is dominated by a delegation of businessmen from various sectors, such as the steel industry, food and beverage, cosmetics and pharmaceuticals, property and industrial estate, textiles, fertilizers, construction, transportation, and logistics.***3***
(A014/INE)EDITED BY INE/H-YH(T.A014/A/BESSR/A/Yosep) 06-04-2017 21:44 |
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