As part of the official opening of Fiji’s Embassy in Jakarta, Indonesia, the Prime Minister, Commodore Voreqe Bainimarama was invited to deliver the keynote address at the Indonesia – Pacific Update 2011 held at the Borobudur Hotel Jakarta and organized by the Indonesia Embassy in Suva.
Present at the trade expo were representatives of the Indonesian Government, Indonesian private sector and Fiji companies interested in developing business connections with Indonesia.
The PM in his address explained that his Government views Indonesia, the largest country in Southeast Asia, as a strategic partner that can play an important role in Fiji’s “Look North Policy”.
“I am positive that when dovetailed with Indonesia’s ‘Look East Policy’, our joint initiatives will collectively provide an opportunity to significantly enlarge our economic engagement with Indonesia and South East Asia and paving the way for integration with the global economy while helping to build a stable regional economic order that reaches out to the greater Pacific,” Commodore Bainimarama said.
The PM further noted that “As my Government looks North for improved economic relations with Indonesia and other growing economies in South East Asia, I believe there will be many opportunities for our private sector members, some of them present here today, to establish networks and share technical information with their local counterparts which would assist them in mutual proportions improve on their products, operation of their businesses and securing a fair share of trade to each other.”
Explaining Government’s public-private partnerships Commodore Bainimarama stated the Fijian Government worked closely with both the public and private sector to carve out a mechanism that was pro-growth and served to improve the lives of people of Fiji.
Government has continued the implementation of the National Export Strategy termed as the NES programme with the private sector at the forefront to address the widening gaps between exports and imports and boost foreign exports earnings.
This programme was formulated to boost investment in the export sectors, specifically audio visual, agro-business, forestry, marine products and eco-manufacturing in particular mineral water – sectors.
“These I am sure, will be of great interest to Indonesian businesses and I encourage you all to seriously consider forging relationships with Fiji businesses, through the Fiji Embassy here in Jakarta or directly with the Fiji Trade & Investment Bureau (FTIB), providing as a result a platform for a robust economic engagement,” Commodore Bainimarama said.
“Fiji has a wide range of lucrative incentives that we believe could attract the serious investor as we strive to sharpen our competitive edge and enhance our comparative advantage.
“As Minister for Finance I also have the provision to formulate and implement the various incentive packages the private sector largely enjoys and benefit from. I urge the local representatives who are here to learn these from the representative of the FTIB present with us today as you contemplate expanding your reach to Fiji and the Pacific.”
Fiji’s trade with Indonesia is worth approximately F$35m in total. Much of this is, however, skewed in favor of Indonesia with imports to Fiji heavily outweighing exports to Indonesia at an average rate exceeding 95 per cent.
Therefore the trade balance has consistently favored Indonesia peaking in 2004 to $F36.8m.
Imports from Indonesia increased to F$38m in 2004 and F$39m in 2005. In 2006 imports dropped 11 per cent to F$34.6m. This trend continued in the following year in 2007 dropping a further 9 per cent to F$31.2m, however imports increased again in 2008 to F$35.8m.
Major items imported from Indonesia include machinery and equipment, chemicals, fuels and foodstuffs.
Fiji’s exports to Indonesia have not shown any degree of consistency. While exports stayed at the range F$1.7m to F$1.1m for years 2003 and 2004, total exports to Indonesia recorded an 88 per cent increase from the previous year in 2005 at F$8.3m.
However, exports declined again by 98 per cent in 2006 and a further decline in 2007. Fiji’s major exports include lead, oil seeds and oleaginous fruits, grains, seeds and fruit, industrial or medicinal plants and personal and household effects.
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