Chance for Serbia to attract investors from Indonesia - Are we able to cooperate with the country of 237 million people?

(Jakarta, capital of Indonesia)

Serbia may soon become one of the most desireable destinations for Indonesian investments in the region, Indonesian Deputy Trade Minister Deddy Saleh says to eKapija.

By the way, Saleh leads a delegation of Indonesia, which has come to Serbia to meet with Serbian counterparts at the Business Forum. Aside from bankers, this delegation consists of the highest representatives of Indonesian ministries of trade, foreign affairs, economy, agriculture, investment bureau, chamber of commerce, as well as people representing the biggest manufacturers of coffee, cocoa, palm oil, fish products and others.

We have to be realistic. It is for sure that Serbia cannot be an equal participant in the trade with Indonesia because this fourth largest country in the world has the population of about 237 million, while Serbia is a country of around 7m people.

However, Indonesians are aware of the small scale of our economy, but they are also aware of a good geostrategic position of Serbia.

(Deddy Saleh)

- Cooperation between our countries has so far been limited to good political and diplomatic relations. We are now coming to Serbia to improve these relations and expand them to the economic, investment field. We are aware that the foreign trade between the two countries amounted to USD 6 million last year. However, it can potentially reach the level of 1 percent of our GDP. That concretely means that we can achieve up to USD 1 billion worth of trade - Deddy Saleh says in an exclusive talk with eKapija.

- We do not see Serbia as a new market, but as a part of the region, as the heart of the investment development in this part of Europe - says our interlocutor.

Saleh says that the domestic economy satisfies 60 percent of the needs of this country of 240 million people, adding that it is not so dependent on trade relations with other countries. Indonesia's nominal gross domestic product in 2011 amounted to USD 830 billion and was the 16th largest in the world.

- We are proud of the fact that the growth of our economy is mainly based on the growth of internal consumption - says Saleh.

Indonesia is the largest manufacturer of crude palm oil in the world, and it also produces rubber, cocoa, coffee and spices. Serbia imports raw rubber, organic chemical products, footwear, clothing, electric machines from Indonesia and exports footwear, clothing, optical aids and electrical equipment to that country. Saleh notes that joint investments are required for the joint manufacture of products for other markets, stressing that the Indonesian government is ready to support the construction of regional centers for its most significant export products.

(Samuel Samson)

- Serbia's biggest advantage and the reason why we should invest in this country is its geostrategic position. All those traveling from Europe to Asia must go through your country. This is the heart of Europe. Serbia also has a good free trade agreement with Russia, Turkey, Kazakhstan, CEFTA countries... That is why we see Serbia as a potential market of 800 million people - Ambassador of Indonesia to Belgrade Samual Samson explains to eKapija.

He adds that this is the reason why they plan to open a distribution center for raw materials in Serbia. Among the products to be supplied from Indonesia are tea, coffee, rubber... On the other hand, Serbia could export corn, soybean, meat (which the ambassador claims to be of top quality)...

Ambassador Samson says to eKapija that it is up to us to show them the fields they could invest in. As he explains, their visit to Serbia is an expression of their wish to invest in our country, and it is now up to us to direct them.

Indonesian businessmen are primarily interested in cities featuring free zones. They have already talked with the representatives of Pirot-based Tigar and Kraljevo.

Jelena Djelic