Indonesian and Dutch businessmen signed 25 agreements with total amount EUR1 billion during the visit of Dutch King Willem Alexander and Queen Maxima to the country since March 9 to 13 - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian and Dutch businessmen signed 25 agreements with total amount EUR1 billion (US1.14 billion) during the visit of Dutch King Willem Alexander and Queen Maxima to the country since March 9 to 13. This was conveyed by President Joko Widodo in a joint press statement at the Bogor Palace, today (03/10).

In a separate meeting with businessmen in Jakarta the king and the queen, accompanied by the minister of trade, Agus Suparmanto, witnessed the signing of three agreements between Friesiand Campina and the Investment Coordinating Board to build three factories in Indonesia. Then, in the field of security business between Thales and PT Len also Hyet Solar and PT Pertamina to form a high solar plant in Indonesia.

“During this visit we have signed various collaborations between the government in the field of sustainable palm oil, women-based and security, cooperation in controlling infectious diseases. Cooperation between businessmen is also carried out worth EUR$1 billion,” said the President.

King Alexander said, he needed Indonesia as a member of Group 20 and ASEAN members to maintain security stability in the region. He noted, “As the third largest democracy in the world and one of the largest economies in Asia, you play a major role, for example, in a joint effort to protect and promote rule-based international order.”

At the same day, in a meeting between the coordinating minister for economic affairs, Airlangga Hartarto, and minister of foreign trade and development cooperation of the Netherlands, Sigrid Kaag, discussed the potential for cooperation in the fields of trade, investment and tourism.

In 2018, the Netherlands is the 15th largest trading partner and 9th largest investor in Indonesia. In the same year, the bilateral trade value reached $5.14 billion, with exports reaching $3.90 billion and imports worth $1.24 billion. But in 2019, the total value of trade between the two countries decreased by 21.7 percent to become $4.2 billion.

The Dutch is also the 11th largest export destination country for Indonesia, with the main commodities including palm oil (19.16 percent), copra (11.31 percent), fatty acids (10.69 percent), unsaturated acyclic mono carboxylic acids (5.97 percent), and lead (5.41 percent).

While, Indonesian imported commodities from the Netherlands, namely distillation of coal tar (25.17 percent), freight vehicles (7.10 percent), petroleum (4.39 percent), artificial tow yarn (2.64 percent), food ingredients (2.12 percent).

Last year, the realization of investment from Netherlands real sector in Indonesia in 2019 reached $2.5 billion for 11,040 projects, an increase of 122 percent compared to the previous year. “We must strengthen bilateral cooperation in various fields, especially in the maritime sector, water management, agriculture and health,” said the minister.

In terms of tourism, the number of Dutch tourists to Indonesia was 215,287 people, ranking 4th of Europe and 16th of the world during 2019. An average increase in visits by 4.88 percent per year since 2014.

The Netherlands is one of the biggest contributors to the Indonesian tourism market from Europe with an average visit duration of more than two weeks, with an estimated foreign exchange earned reaching more than $200 million per year.

While, Kaag revealed that the Netherlands would increasingly open opportunities for cooperation with Indonesia, especially in the maritime, logistics, food security and education sectors. At present, the Netherlands has increasingly expanded the reach of its best universities to reach the “market” of international students.

US$1: EUR0.88

by Linda Silaen, Email: linda.silaen@theinsiderstories.com