Indonesia, New Zealand to Enhance Trade, Investment Cooperation

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 20 Maret 2018
Category: News
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President Joko Widodo meets with Prime Minister of New Zealand Jacinda Ardern (Photo by: Bureau of Press and Media)

President Joko Widodo meets with Prime Minister of New Zealand Jacinda Ardern (Photo by: Bureau of Press and Media)

During a meeting held at the Parliament Building of New Zealand, in Wellington, Monday (19/3). President Joko “Jokowi” Widodo and Prime Minister of New Zealand Jacinda Ardern discussed issues on ways to enhance economic cooperation between the two countries.

According to the President, enhancing economic cooperation is important for two countries and as countries with transparent economy, both Indonesia and New Zealand send a message that trade and investment relations can be established and will create a mutually beneficial relation.

“Relation on trade is not a zero-sum game. Therefore, let us continue to complete negotiations on Regional Comprehensive Economic Partnership (RCEP),” President Jokowi said.

Regarding bilateral trade, the two countries have set the goal of boosting volume trade to NZ$4 billion by 2024 and to meet the target, Indonesia and New Zealand must work hard.

President Jokowi in particular also appreciates New Zealand market that has accepted Indonesia’s prime commodities such as coffee, mangosteen, and zallaca and hopes that other commodities such mango, banana, and pineapple would also be accepted in New Zealand.

On that occasion, the President also asked her New Zealand counterpart to pay attention to export of animal feed produced from waste of palm oil so there would not be any issues on non-tariff barriers.

“I also hope that Her Excellency will pay attention to animal feed produced from waste of palm oil that has now been environmentally questioned,” the President added.

Nevertheless, President Jokowi acknowledged that measures to manage palm oil plantations in a sustainable and environmentally friendly manner continue to be made by the Government of Indonesia and Indonesia also has interest in the sustainable management.

“Palm oil plantations involve 17 million people, or three times the population of New Zealand. Half of the plantations are owned by small farmers. Thus, issues of sustainability must be promoted in line with the issues of small farmers’ right to prosperity,” the President asserted.

In the tourism sector, President Jokowi said Indonesia promoted cooperation in this sector by increasing air connectivity between the two countries.

“I want to promote an increase in air connectivity in order to increase the number of tourists by adding connections from Auckland to Bali this year to five times from the previous three,” the President added.

On geothermal energy development, President Jokowi hopes that the cooperation can be improved to investment cooperation as also mentioned during the next meeting between President Jokowi and Governor-General and Leader of the Opposition (Leader of the New Zealand National Party) Simon Bridges.

“I hope cooperation of geothermal energy can be enhanced to investment cooperation, not only training,” the President firmly said.

President Jokowi also appreciated the signing of Memorandum of Understandings between Kalbe Farma and New Zealand company, Fonterra on the development of nutrition product quality; and between Kalbe Farma and Westland Milk Products on cooperation in raw materials supply guarantee for nutritional products.

Meanwhile, at the beginning of the meeting, PM Ardern expressed her appreciation to Indonesia for partnership which has been established, be it the bilateral or ASEAN partnerships.

Prime Minister Ardern also conveyed her country’s commitment to provide NZ$4.5 million for cooperation in the field of disaster response with Indonesia Red Cross for three years and NZ$3.5 million for development of youths leadership, particularly for the youths in Eastern Indonesia.

For the record, the state visit undertaken by President Jokowi to New Zealand is in concurrence with the 60th anniversary of diplomatic relations between the two countries and the visit is also done to reciprocate the state visit of the Prime Minister of New Zealand to Indonesia.

“For the past 13 years, no Indonesian President have ever visited New Zealand, and this is the time for Indonesian President to pay visit and return the courtesy visit of the Prime Minister of New Zealand to Indonesia,” the President stated.

Besides discussing the economy, both leaders also discussed regional and international issues, including issues on Korean Peninsula, as well as situation in South China Sea and Rakhine State.

Meanwhile, at the Indonesia-New Zealand Business Forum held in Auckland on 16 to 18 March 2018, delegates of Indonesian business sector promoted coffee, palm oil, renewable energy, and employment service to buyers in New Zealand. During the event, the sales of Indonesian products reached US$9.7 billion in which US$6 million was collected from coffee products.

For the record, President Jokowi personally promoted Indonesian coffee before Governor-General, Prime Minister of New Zealand, and ministers of New Zealand during a luncheon at the Government House. (BPMI/ES) (RAS/EP/Naster)

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