VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

VOInews, Jakarta: Indonesia's economy continues to grow amid the global economic slowdown. Recorded in the first quarter of 2024, national economic growth reached 5.11% (yoy). A number of strategies have also been pursued by the Government, including using a flexible, responsive, and accommodative fiscal and monetary policy mix, encouraging consumption and investment, not least through improving business relations between Indonesia and the European Union through the European Chamber of Commerce or EuroCham.

"In line with our efforts to improve the investment climate, Indonesia has taken steps to increase tax incentives to attract foreign and domestic investment to the country," Coordinating Minister for Economic Affairs Airlangga Hartarto said at the European Business Chamber of Commerce (EuroCham) in Indonesia 20th Anniversary Night Gala Dinner in Jakarta, Wednesday (19/06).

It is known that EuroCham is celebrating its 20th anniversary as well as commemorating EuroCham's long-term contribution in improving business relations between Indonesia and the EU which has contributed to the development of Indonesia's national economy. The European Union (EU) and its member states are among the parties that play an important role in Indonesia's foreign trade and investment. In 2023, total trade was recorded at USD30.8 billion and EU investment in Indonesia over the past five years (2019-2023) reached USD12.1 billion.

To optimise and enhance the potential for higher economic cooperation, Indonesia's CEPA negotiations with the EU are also being accelerated and substantially completed. Once the agreement is finalised, the partnership between Indonesia and the EU is expected to be at a new level with the ability to facilitate and create new market access, increase trade between the EU and Indonesia, and expand direct investment. "All of these negotiations are very important for both parties, and President Joko Widodo has also directed that this agreement be reached quickly, so that it can increase investment, and provide greater welfare to the community," Airlangga explained.

The Gala Dinner was held by EuroCham to celebrate the cooperation that has been established so far between Indonesia and the European Union. "The theme of tonight's Gala Dinner is 'Igniting Two Decades of Excellence' which is also in line with Indonesia's transformative journey to achieve momentum towards the Golden Indonesia 2045. We hope that the EU, especially EuroCham, can be Indonesia's partner in achieving this vision by providing access to new markets, technology, and investment opportunities through strong collaboration," said Airlangga.

In addition, Indonesia became the first ASEAN member to start the OECD accession process, and potentially the third OECD member in Asia after Japan and Korea. The OECD accession process is expected to catalyse the formulation or improvement of superior policies and regulations. "Thailand will also follow, and our entry from Southeast Asia will make the OECD stronger, because the OECD needs global south partners like us. For that, concrete steps must be taken and I expect the European business world to work together in the future, so that EuroCham's contribution to Indonesia is expected to remain loud and clear," Airlangga concluded.

Source: Coordinating Ministry for Economic Affairs