Opening Remarks by
H.E. Nicholas T. Dammen
Ambassador of the Republic of Indonesia
at the Jakarta’s Business Forum for Overseas Investment
Mr. Hasan Basri, Head of Investment and Promotion Board of Jakarta
Distinguished Delegates of Jakarta Special Capital District
Ladies and Gentlemen,
First of all, I would like to welcome you all in this Business Forum for Overseas Investment in Indonesia. It is my great privilege to be part of this event which organized by the Board of Investment and Promotion of Jakarta with the support from Indonesian Embassy in Seoul.
I would like to express my deep gratitude to all the participants for committing their valuable time in attending this event amidst your tight schedule.
The forum we have today in Seoul is taking place in an atmosphere in which bilateral relations between the Republic of Indonesia and the Republic of Korea has reached one of the highest peaks of their cordial relations. Let me list some of these milestones to you: the signing of Joint Declaration on Strategic Partnership by Presidents of both countries on December 2006 during the State Visit of President Roh Moo-hyun to Indonesia; the establishment of Joint Task Force on Economic Cooperation on March 2007; the State Visit of President Susilo Bambang Yudhoyono to Korea on July 2007; the Official Visit of Vice President Jusuf Kalla to attend the Inauguration of President Lee Myung-bak on February 2008; the State Visit of President Lee Myung-bak to Indonesia on March 2009; and the Official Visit of President Susilo Bambang Yudhoyono to attend the ASEAN-ROK Commemorative Summit in Jeju on June 2009.
Both countries are committed to implement the Joint Declaration by various actions and plan of actions, as also shown with the intensity of the bilateral relations I just mentioned. One of these is to increase the role played by private sectors in implementing the strategic partnership for the betterment of both countries.
Ladies and Gentlemen,
I would like to remind you that Korea is vying to be one of the biggest ten trading countries in the world moving closer from its current 11th position with the trade value of US$ 728 billion in 2007. Last year, Korea became the 11th country to break the US$ 400 billion mark in annual export. In this case, Indonesia stood among the top ten of Korea’s trading partner with a total value of more than US$ 19 billion last year.
In terms of investments, more than ever, Korean businesses are prospecting the world for more favorable locations for business venture. The Korean government backed this trend with policies aimed in facilitating the flow of investment abroad. Again, as location of choice for Korean investment, Indonesia is among the sought-after places for Korean investors. With the new investment law which brings about better investment climate in Indonesia and the shift of policy toward more restrictive investment environment in several East Asian countries, Indonesia could enhance its position as favorable investment location for Korean investors.
From the other side, I would like to highlight several competitive advantages that Indonesia offers, among others, the 4th largest domestic market in the world with competitive work force, its strategic location among international sea routes, and the abundance of diversified natural resources, along with the economic and political stability. Amidst the global economic slowdown, both Indonesia and Korea are facing new challenges which might affect bilateral investment flows. However, with both countries have their distinct potential in facing the crisis, Indonesia with the economy which still grows amidst the global slowdown and Korea with their predicted earlier economic recovery, investment flows between Indonesia and Korea is surely has a firm base for future growth.
Ladies and Gentlemen,
Most of you might have been aware of the fact that Jakarta is undoubtedly the center of economic activity in Indonesia. Along with its special role as the capital of the country, the metropolitan city is the home of around 9 million inhabitants. With this feature, Jakarta offers various investment opportunities from manufacturing, property, public utility to financial services sector.
Bearing those facts in mind, I do hope that this forum would enable the Jakarta Government and Korean Investors to exchange views in order to explore further business opportunities in Jakarta. I strongly believe that there is still ample room to expand the cooperation between Jakarta and Korean companies, given the potentials of both sides.
Once again, allow me to express my warm welcome and appreciation for your presence here with us, despite your busy schedule.
Seoul, 27 August 2009