RI-New Zealand Commits to Manufacturing Industry Sector Cooperation

By : Ridwan And Aldi Firhand Alqudri | Thursday, October 04 2018 - 18:02 IWST

Minister of Industry Airlangga Hartarto took a photo with New Zealand Deputy Prime Minister Winston Peters on the New Zealand Tech Day event in Jakarta (Photo: Ministry of Industry)
Minister of Industry Airlangga Hartarto took a photo with New Zealand Deputy Prime Minister Winston Peters on the New Zealand Tech Day event in Jakarta (Photo: Ministry of Industry)

INDUSTRY.co.id - Jakarta, Indonesia and New Zealand are committed to increasing the value of bilateral trade by up to two times a minimum in the next four years, one of which is through cooperation in the industrial sector.

In 2017, the trade value of the two countries reached NZ $ 1.76 billion (around IDR 17.6 trillion) which is targeted to be NZ $ 4 billion (IDR 40 trillion).

"What we will push, for example they can open a market for automotive and components from Indonesia, then they develop dairy products in Indonesia. Well, this is what can be done and we believe that the trade can go up, "Industry Minister Airlangga Hartarto said after meeting New Zealand Deputy Prime Minister Winston Peters in Jakarta on Thursday (4/10/2018).

The Minister of Industry explained, the Indonesian Government was spurring the productivity and competitiveness of the automotive industry to meet the needs in the domestic and export markets.

"So far, Indonesia has exported automotive products to Asean, Middle East to Latin America. We see, the automotive market in Australia and New Zealand is very good. Moreover, the position of the location is closer," he explained.

The Ministry of Industry projects, automotive manufacturers in Indonesia will export vehicles in complete form (completely built up / CBU) to penetrate 250 thousand units by 2018.

"A number of automotive industries in the country have expressed their commitment to increase investment, labor and exports," said Airlangga.

Furthermore, Indonesia opened up opportunities for the Kiwi country to increase its investment, especially in the milk processing industry sector. Because the milk processing industry is one of the mainstay sectors for New Zealand.

"They became investors and exporters of the world's largest dairy products, including to Indonesia. For example, Fonterra has invested in Indonesia for Rp735 billion (NZ $ 36 million) since 2015," he said.

"The construction of a milk processing plant in Bekasi, West Java is the realization of the company's largest investment in the ASEAN region in the past decade," added the Minister of Industry.

In addition, according to Airlangga, New Zealand has the power of technology in the development of the food and beverage industry. The expected effort is the transfer of technology to boost the competitiveness of the national food and beverage industry in the digital era.

"Both countries are interested in establishing partnerships in the food and beverage industry sector because both are blessed with abundant natural resources," he explained.

Moreover, for Indonesia, the food and beverage industry consistently contributes greatly to the national economy, reflected in the contribution to GDP of the non-oil and gas processing industry reaching 35.87 percent.

New Zealand Ambassador to Indonesia, Trevor Matheson, said that he saw a great opportunity for New Zealand to contribute and support Indonesia in the development of technology.

Currently, New Zealand is implementing innovative solutions in the fast-moving consumer goods (FMCG) manufacturing sector, including construction and construction to increase productivity and effectiveness.

New Zealand companies are seriously developing partnerships with Indonesia to encourage the adoption of technology in all sectors, including manufacturing.

"Especially at this time we are trying to enter the industrial revolution era 4.0 with the transition of innovative technology as a vital thing," he explained.

The expansion of the partnership between Indonesia and New Zealand is an important moment in celebrating 60 years of diplomatic relations between the two countries. Bilateral cooperation has been supported by the New Zealand Australia Asean Free Trade Area (AANZFTA).

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