"For investments there are two sectors
that New Zealand is interested in, animal husbandry and geothermal
plants."
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News
Gita Wirjawan. (ANTARA) |
Jakarta
(ANTARA News) - New Zealand is interested in investing in geothermal and animal
husbandry projects in Indonesia, trade minister Gita Wirjawan said.
"For
investments there are two sectors that New Zealand is interested in, animal
husbandry and geothermal plants," he said during a seminar on business and
investments held by the Indonesian Chamber of Commerce and Industry (Kadin) and
the New Zealand government here on Monday.
The event
was also attended by visiting New Zealand prime minister John Key, flanked by
trade minister Tim Groser and a 40-member business delegation.
"With
regard to animal husbandry, New Zealand has 30 million head of cattle and 40
million sheep, while its population is only 4.5 millions. So there is a lot of
added value that they could give us," he said.
Gita who is
also head of the Capital Investment Board, said New Zealand`s businessmen have
been positive about the investment potential in the animal husbandry sector, not
only in cattle breeding but also processed cattle products.
"New
Zealand is also interested in geothermal development projects because that
country is, like Indonesia, located in the ring of fire and so they are
interested in Indonesia, which has 40 percent of the world`s geothermal total
reserves," he said.
Gita added
that New Zealand also has skills in processing geothermal energy, as some
experts in the field also joined the prime minister`s delegation.
He said,
however, he could not as yet tell about the value of their investment.
"But I think it will be quite big. For cattle development the investment
is expected to be realized this year, while for geothermal projects, further
study is needed.
With regard
to trade between the two countries, the minister admitted it was still very
small, only US$1.1 billion.
"The
government is making efforts to see trade between the two countries reach
minimally one percent of the two countries` total gross domestic product. The
two countries` GDPs total US$1.2 trillion and so one percent of that is US$12
billion. As it is now still recorded at US$1.1 billion, it means a lot of work
still has to be done," he said.
Indonesia
export products to New Zealand include textile, garments, agricultural and
animal husbandry materials.
"Indonesia,
meanwhile, imports a lot of processed milk, which is their main export. We now
still suffer a deficit of between US$100 million and US$200 million in our
trade with New Zealand, but hope with the ratification of the ASEAN-New Zealand
Free Trade Agreement early this year that conditions would become more
equal," he said.
The FTA has
been considered mutually beneficial because, the minister said, under it
Indonesia could export more goods and services to New Zealand.
According
to data from the New Zealand government, Indonesia is the world`s tenth largest
export market for that country and the largest market in Southeast Asia.
New
Zealand`s exports to Indonesia reach 870 million New Zealand dollars, and
imports from Indonesia total 704 million dollars.
Total
bilateral trade between the two countries has reached 1.5 billion New Zealand
dollars.
New
Zealand`s main exports to Indonesia in 2011 were food and drink, including
milk, cream milk, cheese and butter, amounting to 60.9 percent of its total
exports worth 521.3 million New Zealand dollars.
Cooperation
between the two countries in geothermal projects began in 1982 when New
Zealand`s then prime minister, Robert Muldoon, and president Soeharto opened
the first geothermal project in the country in Kamojang.
Editor: Priyambodo RH
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