Indonesia and the Czech Republic Agree to Enhance Economic Cooperation

INDUSTRY.co.id - Jakarta, Indonesia – Indonesia and the Czech Republic have agreed to enhance cooperation in various fields, among others in infrastructure, transportation, vocational education, energy and mineral resources, environmental protection, defence industry, and healthcare, at the 6th Session of the Joint Economic Committee (JEC) held in Jakarta (18/10).

During the meeting, the Director General of American and European Affairs, Mr. Umar Hadi, also invited the Czech government and businesses to invest in the development of Indonesia's new capital, Ibu Kota Nusantara (IKN).

"IKN has been designed as a smart city that prioritizes sustainability in its development. I invite the Czech government and private sector to participate in one of the major projects of the 21st century," said Mr. Umar Hadi.

Meanwhile, Acting Director General in Charge of the Economy Section of the Ministry of Industry and Trade of the Czech Republic, Mr. Eduard Muřický, expressed his appreciation for the JEC, which has played a crucial role in enhancing economic cooperation between the two countries. Director General Muřický will also convey the investment opportunities in IKN to Czech businesses.

Two Czech companies, LINET and Škoda Group, were also present at the meeting. LINET has decided to expand its business in Indonesia and establish a production center for patient beds, with a focus on meeting the needs of the Asia-Pacific region. Meanwhile, Škoda Group is exploring investment opportunities and cooperation with various parties in Indonesia, including joint production and internship programs for vocational students.

In addition to attending the JEC, the Czech delegation also visited the Muara Karang Steam Gas Power Plant (PLTGU) operated by PLN Nusantara Power, and participated in the Indonesia-Europe Business Forum (IEBF) organized by the Directorate General of American and European Affairs of the Ministry of Foreign Affairs of the Republic of Indonesia on October 17-18, 2023.

During the IEBF, an investment commitment was announced between LINET and PT D&V International Makmur Gemilang to establish a production center in Indonesia.

The Czech Republic is one of Indonesia's emerging partners in Central Europe. Czech investments in Indonesia reached USD 3.2 million in 2022, marking a significant increase of 211.9% from the previous year. In terms of trade, the total trade between Indonesia and the Czech Republic also continues to grow, reaching USD 254.9 million in 2022. The JEC is held every two years, with the previous meeting taking place in Brno, the Czech Republic in 2021.