AMSTERDAM: Dutch Prime Minister Mark Rutte exchanges souvenirs with Association for Netherlands Alumni and Families chairman Theo Lekatompessy (left) and Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan P. Roeslani (second right) after a meeting with businessmen in Jakarta on Wednesday.
Indonesia and the Netherlands have pledged to strengthen economic cooperation in the future, boosted by a number of new business deals inked by the two governments and businesses.
The partnership will involve various areas including agriculture and infrastructure development as stated during the three-day visit by Dutch Prime Minister Mark Rutte, which concluded on Wednesday.
Rutte underlined Indonesia’s role as Netherlands’ strategic partner, 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 an already robust bilateral trade, which amounted to €3.2 billion (US$3.4 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 percent from 2014, in 421 projects, according to data from the Investment Coordinating Board (BKPM).
During his visit, Rutte led a Dutch delegation comprising ministers, including Infrastructure and Environment Minister Melanie Schultz van Haegen, business leaders from 110 companies, educational institutions and NGOs.
Rutte’s second state visit to the former Dutch colony in three years followed a similar visit by President Joko “Jokowi” Widodo to the Netherlands in April.
The delegates signed 38 memorandums of understanding (MoUs) and letters of intent (LoIs) covering economic and non-economic issues, such as water management, flood protection, climate change and health care, with their Indonesian counterparts, further intensifying ties between the two countries.
On the occasion, Rutte also said the Netherlands was keen to enhance its bilateral relationship as business prospects in Indonesia had improved due to 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 Jokowi’s administration would boost 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.
The Netherlands has reasserted its commitment to helping Indonesia develop its infrastructure, particularly in port construction and the National Capital Integrated Coastal Development (NCICD), popularly known as the Giant Seawall.
Another major interest for the Dutch delegation is seaport management, according to Rutte. This follows an agreement signed last year by Indonesia’s state-owned port operator Pelindo I and the Port of Rotterdam Authority to develop a nationally strategic port at Kuala Tanjung, North Sumatra.
