Danish Trade and Investment Minister Pia Olsen Dyhr is slated to lead a business delegation to Indonesia at the end of this week, aiming to explore business opportunities and tighten commercial links with local counterparts.
Danish Ambassador to Indonesia Martin Bille Hermann said that among the top items on the agenda would be an event announcing the Danish government’s new market strategy for Indonesia, which Denmark considers an increasingly important partner in the years ahead.
“What is clear is that there is potential to increase the commercial relation between our two countries,” Hermann told a press briefing in Jakarta, recently.
Exports from Denmark to Indonesia have been traditionally lower than similar European countries like Sweden and Germany. In 2011, Indonesia was the 60th biggest export destination for Danish firms. According to Danish statistics, exports expanded substantially by 70 % to US$180 million last year, which is a positive sign for achievable growth in the future.
In terms of investment, Denmark also still lags behind other European countries, investing only $100 million in three projects last year, according to data at the Investment Coordinating Board (BKPM).
The trade minister is scheduled to visit Poglar pumping station, which utilizes Danish energy-efficient technology, in West Jakarta with Jakarta Governor Joko Widodo and will announce a new cooperation program on the environment, energy and climate worth $50 million with National Development Planning Minister Armida Alisjahbana.
The minister’s visit will mark heightened efforts in the coming years to strengthen bilateral economic relations, according to Hermann. “There is a match between some of the challenges and opportunities in Indonesia and what are traditional Danish strengths,” he said, adding that Danish businesses would try to tap into Indonesia’s impressive economic growth.
They might focus on six specific sectors, including infrastructure, Hermann said.
Denmark, a member of the European Union, is one of the 20 richest countries in the world based on income per capita, thanks in part to its sizeable shipping industry and relatively significant share of North Sea oil reserves.
The Nordic economy, which relies largely on strong domestic consumer spending and investment, has recovered from recession quite quickly, growing by 1 % per quarter in 2011, outpacing the 0.2 % average in the 17-nation eurozone.
It is the first country in the world to be committed to leading the transition toward a green growth economy entirely non-reliant on fossil fuels by 2050 and this has been supported by a clear policy framework. Since 1980, the country has become a global leader in the development of new sustainable technologies.
Indonesian Association of Urban Planners secretary general Bernardus Djonoputro said at the briefing that Danish firms had a well-known reputation in cutting-edge innovation in green technology, which Indonesia could benefit from as it grew its economy through massive expansion in wide-ranging areas, especially infrastructure. (Linda Yulisman, The Jakarta Post)