Netherlands, Indonesia to boost trade ties

The partnership will involve various areas including agriculture and infrastructure development as stated during a three-day visit by Dutch Prime Minister Mark Rutte, which concluded on Wednesday.
Rutte underlined Indonesia’s role as a strategic partner of the Netherlands, saying that both countries had a lot to offer in the economic field, especially owing to the former’s status as Southeast Asia’s biggest economy.
“Indonesia plays a big role in the region. It is one of the central players in Asean, and Indonesia’s leadership in this region is highly valued,” Rutte said in a limited press briefing. “The country will contribute to maintaining stability in the world, particularly in this region.”
The importance of the two countries’ economic ties is highlighted by already robust bilateral trade, which amounted to 3.2 billion euros (Bt120 billion) last year, according to figures released by the prime minister. Netherlands is now the main market for Indonesian exports to Europe.
Dutch businesses invested a total of $1.3 billion in 2015, down 24.4 per cent from 2014, in 421 projects, according to data from Indonesia’s Investment Coordinating Board.
During his visit, Rutte led a Dutch delegation including Infrastructure and Environment Minister Melanie Schultz van Haegen and other cabinet ministers, business leaders from 110 companies, educational institutions, and non-governmental organisations.
Rutte’s second state visit to the former Dutch colony in three years followed a similar visit by President Joko Widodo to the Netherlands in April.
The delegates signed 38 memoranda of understanding and letters of intent covering economic and non-economic issues, such as water management, flood protection, climate change and healthcare, with their Indonesian counterparts, intensifying ties between the two countries.
Rutte also said the Netherlands was keen to enhance its bilateral relationship as business prospects in Indonesia had improved because of extensive reforms, particularly on the ease of doing business.
“[Dutch] businesspeople find it is increasingly easier to do business here. But still, there is more room for improvement,” he said, adding that the 14 economic-reform packages issued by Widodo’s administration would improve the business climate, although they still depended on implementation. Indonesia climbed 15 places to 91st on the World Bank’s Ease of Doing Business Index for 2017 as its deregulation moves have attracted the attention of global investors.