Imagine a pair of shoes with Italian design and
Indonesian craftsmanship. Those are the fruits of mutual partnership
Industry Minister MS Hidayat had in mind when he met with Italy’s
Foreign Affairs Minister Giulio Terzi di Sant’Agata and his 31 business
delegates in Jakarta on Tuesday.
“I have asked for a ‘G-to-G’
agreement on footwear industry cooperation. We need a footwear designer
consultant for small and medium enterprises, such as shoemakers in
Cibaduyut and Sidoarjo. We discussed it with the foreign minister
earlier today and will be followed up by our staff,” Hidayat said after a
The meeting was held in conjunction with the
signing of a joint venture agreement between Indonesian vehicle
component maker PT Astra Otoparts and Italian tire company Pirelli &
C. SpA for the construction of a motorcycle tire plant with a total
investment of $120 million.
Pirelli, the world’s fifth-largest
tire producer, would control 60 percent of the joint venture’s shares,
the rest being held by Astra Otoparts, a subsidiary of diversified
company PT Astra International.
By establishing a new plant in
Indonesia, Pirelli hoped to strengthen its presence in the Southeast
Asia region, the largest motorcycle market in the world, with 250
“Italy has been widely known for its fine
automotive and footwear products. Indonesia produces a lot of natural
resources, some of which have also been exported to Italy. It will be
better if Italian businesspeople can invest in our automotive industry
and footwear, which can absorb more workers,” Hidayat said.
said Italian businesses were ready to engage more with Indonesian
companies and expand their outreach amid the continued eurozone crisis.
He also acknowledged the large, young Indonesian population as a base of
the upcoming bilateral economic cooperation.
quickly anticipated the [economic downturn] situation, as a result, our
economy remains stable and Italian families grow wealthier than most
Europeans. A more-open economy supports our productive days. By strong
willingness, Italy and Indonesia can integrate more,” he said.
realization of Italian company’s investment in Indonesia in 2011,
excluding oil and gas and banking sectors, stood at $5.9 million
comprising 39 projects, as stated by the Indonesian Investment
Coordinating Board (BKPM). The investment is still considered small
compared to other European countries’ investment, such as England, which
stood around $158.1 million.
“Within oil and gas sector, there
is a registration of interest to invest around $3 billion, which is a
good sign. But I think in a context of a two-economy making up $2.5
trillion, the GDP of the two countries, we can do a lot more and it
takes getting to know each other better,” said Trade Minister Gita
In line with the government’s plan to curb subsidized
fuel consumption, Hidayat expected Italian fuel-to-gas converter kit
producers to cooperate with state-owned companies soon.
between Indonesia and Italy has been growing robustly, with total trade
of $4.39 billion, up nearly 40 percent from $3.27 billion last year.
mainly exported coal, chemical products and palm oil, while Italy
shipped machinery to Indonesia, including home appliances, iron pipes,
cars and spare parts and accessories.
Source: The Jakarta Post - 26 April 2012