INDONESIA, BELGIUM AGREE TO STRENGTHEN ECONOMIC TIES by Fardah

Jakarta, March 18, 2016 (Antara) - The Belgian government has sent a high-profile delegation to Indonesia, headed by Princess Astrid of Belgium, to strengthen bilateral economic relations, particularly in the fields of trade and investment.      Some 25 Memoranda of Understanding (MoUs) and business contracts between business associations of both countries were signed during Princess Astrid's visit to Jakarta.          Also, Indonesian President Joko Widodo (Jokowi) and Princess Astrid, during their meeting at the Merdeka Palace in Jakarta, on March 15, 2016, agreed that the two nations should step up economic cooperation.          Jokowi expressed his optimism that Belgium's largest economic mission to Indonesia would help strengthen bilateral relations between both countries.         The Head of State also called for expanding interactions between both nations' business communities and for expanding market access for Indonesian products, such as footwear, rubber, textiles, electronics and furniture, to enter Belgium.          Jokowi also invited Belgian investors to start businesses in strategic sectors in Indonesia, such as infrastructure, telecommunications, the film industry, and raw materials.          "The president agreed to boost economic ties with Belgium, especially in trade and investment, as Indonesia is the production base and gateway for Belgian products to Southeast Asia," Foreign Affairs Minister Retno LP Marsudi stated after the bilateral meeting.          President Jokowi also briefed the Belgian business delegation on the government's policies to increasingly open the economy and expand competition.      "The president touched on the 10 economic policy packages that the Indonesian government has issued so far. One of the packages deals with the Negative List of Investment," Retno Marsudi said.          Belgium is Indonesia's key partner, in terms of trade and investment, according to the minister.          Total trading between Indonesia and Belgium in 2015 reached US$1.67 billion, while investments amounted to US$7 million, she said.            Princess Astrid, as representative of King Philippe, headed a 301-member delegation to  Indonesia from  March 12 to 18, 2016.   In total, 127 companies and at least four ministers participated in the economic mission.          The delegation is the largest-ever Belgian mission to come to Indonesia, and is a landmark in the growing ties between the two nations, the Belgian government said on its official website.          Previous missions were organized in 1970, 1978, 1985 and 2008; each time presided over by a member of the Belgian royal family. Then-Crown Prince Albert presided over the first three missions, before becoming King of the Belgians in 1993.  King Philippe presided over the last mission in 2008, when he was Crown Prince.          Of note, total exports of goods from the European Union (EU-28) to Indonesia reached EUR 9.5 billion in 2014.          Belgium represented a 4.8% share, which makes it the 6th largest exporter of goods to Indonesia from the EU.          Belgium is also the 6th largest importer of Indonesian goods in the EU. In 2014, chemical products represented 30% of total Belgian exports to Indonesia, followed by machinery and equipment (21%) and animal products (11%).          Additionally, the economic mission focused on a number of themes, such as maritime and infrastructure development, clean energy, and smart cities, which are crucial for the development of the Indonesian economy and in which Belgian companies can provide world-class expertise.          Princess Astrid also held a meeting with Vice President Jusuf Kalla on March 14 to discuss opportunities to expand economic cooperation between the two countries.          Urther, Deputy Foreign Minister AM Fachir, who accompanied Kalla during the meeting, told the press that the vice president and the Belgian princess discussed important sectors for economic development in Indonesia, such as technology and renewable energy, infrastructure and maritime engineering, management of smart cities, and agriculture.          Meanwhile, the head of the Indonesian Investment Coordinating Board (BKPM), Franky Sibarani, said Belgium investments in Indonesia over the past six years (2010-2015) have remained in the range of just US$132 million, or Rp1.6 trillion. Belgium thus ranks 27 on the list of investor countries to Indonesia by origin.          Belgian investors, Franky Sibarani said, have been supporting the industrialization process undertaken by the Indonesian government through ensuring transfers of technology.          "The economic relationship remains moderate, and Indonesia is 52nd in the list of Belgium's trading partners and 39th among importers from Belgium," Franky said.          Belgium investments in Indonesia include those in diverse fields, ranging from power generation to the cocoa processing industry.          The BKPM chief also said he planned to immediately follow up on an agreement between Indonesia and Belgium to improve cooperation in investments.          "Next week we are having a meeting with the Ambassador of Belgium to follow up on investors' interests about information related to their businesses in the renewable energy sector, including wind power," Sibarani said. ***3*** (f001/INE/B003)  18-03-2016 22:12:10