INDONESIA, FRANCE FORGE CLOSER ECONOMIC TIES by Fardah

   Jakarta, March 31, 2017 (Antara) - Indonesia has welcomed the historic visit of President of France Francois Hollande, as it has been over three decades since a French president had last visited the country.

         Hollande's visit on March 29 was part of his official trip to three Southeast Asian countries: Singapore, Malaysia, and Indonesia.

         He was accompanied by around 40 French business executives, several ministers, and parliamentarians. 
    President Joko Widodo (Jokowi) and Hollande bore witness to the signing of five memoranda of understanding (MoUs) between several officials of both countries at the Presidential Palace in Jakarta on Mar 29.

         "I laud the signing of these five MoUs comprising those in the sectors of sustainable urban development, tourism, defense, science and research, as well as research manpower exchanges," President Jokowi stated during a press conference with his French counterpart.

         Jokowi welcomed the new commitment made by 40 French business executives who expressed interest to invest at least US$2.6 billion in several sectors, including energy, retail, and infrastructure.

         "This investment intends to bolster the two countries' relations, mainly in the economic sector," Jokowi stated.

         The bilateral relations between the two countries have strengthened since the signing of the strategic partnership agreement in 2011.

         French investment in Indonesia in 2016 had reached $109 million, spread across 424 projects. Over the last five years, French investment in this country has reached $701.5 million, or ranked 16th out of the 133 investor countries.

        Some 65 percent of French investment are located in Java Island, while some 12 percent are located in Sumatra, 10 percent in Maluku, nine percent in Bali and Nusa Tenggara, and four percent in Kalimantan.

         Five main sectors of French investment include food industry with 18 percent, basic metal industry with 15 percent, electronics industry with 15 percent, electricity, gas, and water industry with 15 percent, non-metal industry with 14 percent, and mining industry with 10 percent.

         At a meeting with officials of Indonesia's Investment Coordinating Board on March 29, 25 French CEOs expressed hope for regulatory stability in Indonesia and underlined the importance of mutual support policies in trade and investment.

         The board's deputy for investment planning Tamba Hutapea noted in a statement that the delegation had given positive responses to the government's efforts to attract investment.

         French investors are keen to invest in the trade, transportation, warehouse and communication, electricity, gas and water sectors, as well as in the food, chemical, and pharmaceutical industries.

          The value of the two countries' bilateral trade had reached $2.34 billion last year. He remarked that the value of Indonesia's exports to France reached Rp972 million, covering electronic products, footwear, rubber and rubber products, furniture, clothing, and others. 
   In the meantime, the governments of Indonesia and France also agreed to strengthen strategic partnerships between the two countries, mainly for developing the maritime and creative economy sectors.

        With regard to the creative economy sector, cooperation in the fields of cinematography, fashion, and digital economy will continue to be carried out.

        Meanwhile, President Hollande revealed that defense cooperation between Indonesia and France is being intensified, as both countries are striving to increase self-reliance in the sector through their human resources and weaponry.

          In the tourism sector, he said, France views Indonesia as a vast archipelagic country, and he believes that the country needs to advance its transportation sector that will ultimately boost tourist arrivals.

          More than 238 thousand French tourists visited Indonesia last year.

         Hollande expressed keen interest, particularly to forge maritime cooperation with Indonesia as part of the efforts to protect the oceans and the world from the impact of global climate change.

         "It is our responsibility to protect the oceans and the world," Hollande stated during a maritime dialog held at the Maritime Affairs and Fisheries Ministry on March 29.

         He lauded the stringent measures taken by the Indonesian government to thwart illegal fishing in Indonesia's waters to protect its marine territory and natural resources.

         The sea is also a target of investment. Thus, it is important to strengthen cooperation and make optimum use of marine potentials, he remarked.

       The French President was delighted to hear that a number of French companies would begin investing in various projects in the maritime and fisheries sector.

       Indonesian Maritime Affairs and Fisheries Minister Susi Pudjiastuti told the press following the dialog that France should abolish its import duty on the Indonesian fishery products after Indonesia has consistently eradicated illegal fishing.

        France is now the market for Indonesian fishery products, including shrimps, crabs, and tuna.

        Indonesian Foreign Affairs Minister Retno L.P. Marsudi affirmed that France has always been an important partner of Indonesia in the European Union.

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(T.F001/A/BESSR/F. Assegaf) 31-03-2017