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EUROCHAM 25 November 2010 Seminar on Trade and Investment Opportunities Between Poland and Indonesia EUROCHAM EU – INDONESIA TRADE RELATIONS Two economic giants • EU is world’s largest single market 500 million + • Indonesia will be among world’s top 10 economies by 2050 In 2009, trade was over EUR 16 billion • EU is Indonesia's second largest export partner • Indonesia has a EUR 6 billion trade surplus • Indonesian exports include palm oil; coal; footwear, furniture • EU exports electrical appliances; chemicals; ships; aircrafts; pharmaceuticals; electronics; machineries EUROCHAM EU – INDONESIA OPPORTUNITIES • EU companies indicated the following advantages of Indonesia for investors: – Economic growth (soon 7%) – Large and Growing Middle class – Stable political situation – Largest economy in a dynamic ASEAN – Infrastructure opportunities – ASEAN potential – internal market production networks and FTAs. – Availability of natural resources – Large labour force, especially young people • The above is incentive enough for many to invest EUROCHAM EU – INDONESIA INVESTMENT RELATIONS • • • EUR 50 billion EU investments, over 700 EU companies employing over 500,000 persons European investors are interested in oil and gas; mining; services; food products; metal and machinery; chemicals and manufacturing. But concerned about protection, IPR enforcement, regulatory inconsistency, infrastructure, tax policy & local content requirements EUROCHAM ABOUT EUROCHAM Supporting European business interests in Indonesia by seeking better market access and improved business environment for European companies Working groups in 14 sectors 120 member companies from a wide range of European countries EUROCHAM CORE ACTIVITIES ADVOCACY Sectoral Working Groups Information Sharing Position Papers/Letters to GoI Private Public Policy Dialogue NETWORKING Luncheons/Dinners Golf Tournament Gala Dinner PUBLICATIONS Annual Position Papers EU Financed Studies Eurobusiness Directory Country Report Regulatory Update EUROCHAM WORKING GROUPS INTERNATIONAL TRADE WORKING GROUP INFRASTRUCTURE WORKING GROUP NATIONAL SINGLE WINDOW WORKING GROUP TRANSPORT & LOGISTICS WORKING GROUP FMCG WORKING GROUP CHEMICALS & PHARMACEUTICALS WORKING GROUP AUTOMOTIVE & TIRES WORKING GROUP TOBACCO WORKING GROUP PROPERTY WORKING GROUP IPR WORKING GROUP SECURITY WORKING GROUP FINANCE WORKING GROUP SUSTAINABLE DEVELOPMENT WORKING GROUP LEGAL-TAX-INVESTMENT WORKING GROUP EUROCHAM YEARLY POLICY DIALOGUE HEADS OF WORKING GROUPS AND BOARD MEMBERS MEET WITH MINISTER OF TRADE EUROCHAM MEMBERS Currently 120 member companies, mainly European MNCs Average membership growth, about 10% per year, since 2004