JAKARTA (TheInsiderStories) - President Joko Widodo, popularly known as Jokowi, held a meeting with at least ten CEOs of major Australian companies in Sydney at the weekend, with some executives engaging in tourism, mining and power sector expressing interest to expand their business in Indonesia.
The President visited Australia on Saturday and Sunday with busy schedule. The President met and held talks with Australian Prime Minister Malcolm Turnbull, Australian Governor General Sir Peter Cosgrove and Lady Cosgrove, New South Wales Premier as well as Indonesian students and communities.
One CEO of a hotel chain company expressed the interest to expand its network in Indonesia to 100 in the next 3-4 years from 10 currently. Another top executive expressed an interest to develop a renewable power plant with capacity of 200 MW.
The Head of National Investment Coordinating Board (BKPM) Thomas Lembong said in total, the ten major Australian companies planning to invest around US$4-5 billion in the next few years in areas of mining, processing industry, food and beverages, tourism (marina), hotel, pharmaceutical and infrastructure.
Both leaders, President Jokowi and the Australian PM, also discussed ways to dismantle trade barriers in order to boost the trade and investment between the two neighboring countries.
During the meeting with the top executives, the President said Indonesia’s rating has improved, citing sovereign rating issued by Moody’s and Fitch, as well as Indonesia’s ranking of Ease of Doing Business (EODB) issued by International Finance Corporation (IFC), an arm of the World Bank.
Both leaders also supported the talks on IACEPA (Indonesia- Australia Comprehensive Economic Partnership Agreement), which is expected to be finalized by the end of this year. The sixth round of the talks was held in Canberra, on Feb. 20-24 2017, a day before the President’s visit.
Based on the latest survey conducted by Austrade, Australian business community placed Indonesia as their top five investment destination.
During the visit, the President was accompanied by Indonesian Foreign Minister, Trade Minister, Cabinet Secretary, Indonesian Ambassador to Australia, Head of Creative Economic Agency (BeKraf) as well as Indonesian Chamber of Commerce and Industry (KADIN) and Indonesian Young Entrepreneurs Association (HIPMI).
Based on BKPM data, in 2016, realized Australian investment in Indonesia reached US$174 million, up 4% from previous year of US$167 million.
On Sunday morning, both leaders looked relaxed as they walked around the Royal Botanic Garden Sydney. Both were greeted by people who were also walking around the garden. (*)
PM Turnbull said he was happy in welcoming President Joko Widodo to Australia and reassured that the relations between the two nations has been warmed. The focus of the meeting agenda was on trade and business. (*)