Trade with Indonesia to triple by 2020: KIEP

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Trade with Indonesia to triple by 2020: KIEP

Korea’s trade volume with Indonesia is expected to jump more than three-fold to $100 billion by 2020, fueled by closer economic cooperation and investments, a local think tank said yesterday.

The Korea Institute for International Economic Policy (KIEP) said Indonesia is emerging as a global market player thanks to the ability to pull off steady economic growth, its abundant natural resource reserves and large population.

As of 2011, two-way trade hit $30.7 billion, with numbers likely to reach $50 billion by 2015, it said.

The think tank said the increase is being fueled by Jakarta’s announcement of Indonesia’s Economic Development Corridors plan that is expected to provide considerable business opportunities to foreign companies.

“The country’s growth potential is causing an influx of investments into the country that hit $18 billion last year, up 39 percent from 2010,” KIEP said. “In the first quarter of 2012, foreign direct investment surged 20 percent on-year, with funds going into manufacturing, mining and retails.”

Singapore, Japan and Korea were leading investors to the Southeast Asian country. The foreign direct investment of Korean companies reached $1.2 billion last year. The KIEP said local companies need to take full advantage of incentives offered by Indonesia and target the double-digit rise in consumption in recent years as the country’s middle class grows at a rapid pace.

Seoul should try to forge a comprehensive economic partnership agreement with Indonesia that can promote stronger bilateral business ties, it added.

Yonhap

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