RI-Afghanistan Agree to Increase B2B Cooperation

INDUSTRY.co.id - Jakarta, Indonesia and Afghanistan encourage business-to-business (B2B) cooperation between industry players in both countries.

This partnership is believed to be able to spur economic growth that is equally beneficial so that it has an impact on the welfare of the community.

"The most important thing is that we encourage B2B to see each other's potential. However, they see that industrial development in Indonesia is relatively superior to them. They also want to learn to make industrial policies, "Industry Minister Airlangga Hartarto said after accompanying Vice President Jusuf Kalla to meet with the Chief Executive of the Afghan Government Abdullah Abdullah at the Vice Presidential Palace, Jakarta (4/10/2018).

According to the Minister of Industry, from the meeting, the Government of Afghanistan hoped that special treatment for their commodities would be exported to Indonesia.

"They feel that if their products enter Indonesia do not get special treatment, it becomes difficult to compete," he said.

Airlangga said, Afghanistan has the potential of raw materials to meet the needs of the pharmaceutical industry in Indonesia.

"So, through downstreaming, our industry increases the added value of these raw materials. In addition, Afghanistan is also a large enough producer of essential oils," he said

In addition, the Afghan Government also hopes that Indonesian investors can increase investment there. "In the near future, the two countries will do capacity building first. Then, it will be increased to the level of investment and visit to Afghanistan," he added.

According to Airlangga, the Government of Afghanistan has taken reform steps to create a conducive business climate. Therefore, Indonesian business people need to see opportunities for expansion into the country.

"What is still potential is among others the agriculture sector, infrastructure projects, mineral exploration, textiles and miscellaneous, as well as small and medium industrial sectors," he said.

On the contrary, the Minister of Industry invited Afghan businessmen to increase investment in Indonesia, especially in the manufacturing industry. In addition, it includes maintenance services to support domestic infrastructure projects.

"This cooperation will put Indonesia as the main partner in Southeast Asia to meet Afghanistan's economic development needs," he explained.

In the trade sector, Afghanistan ranks 113th in Indonesia's export statistics to the world with a total export value in 2016 of USD16.22 million, increasing to USD20.18 million in 2017.

Meanwhile, Afghanistan has invested in Indonesia for the basic chemical industry, chemical and pharmaceutical products, basic metals, metal goods, machinery, and electronics with 16 projects worth USD90.5 thousand.