Switzerland, Indonesia, not only exhange information, economic cooperation is starting

8 years ago - Published in Finance, Fundamental Analysis

Switzerland and Indonesia launched an economic cooperation and development strategy for the 2017-2020 period on Friday, renewing the European country's commitment to support economic development in the archipelago for the next four years. The offer was launched during Schneider-Ammann's two-day visit to Indonesia.

Cabinet Secretary Pramono Anung said that the two countries saw a sizable bilateral trade improvement in the past three years at 238 percent.

Between 2013 and 2016, Switzerland partnered with various Indonesian ministries, the central bank, the Financial Services Authority (OJK) and international entities such as the World Bank, International Finance Corporation and Asia Development Fund as part of a similar program to improve public service delivery through the efficient and sustainable use of resources while improving the business climate.

There are notable outcomes from the partnership, including better management of the state budget and sustainable production by 165,000 cocoa farmers in the country.

During the visit, Schneider-Ammann also inaugurated a new Swiss Business Hub, which aims to help companies and investors from Switzerland access the Indonesian market on the back of rising demand to invest in Southeast Asia's biggest economy.

The Swiss Business Hub, located at the Swiss Embassy in Jakarta, will provide advice and business contacts to companies seeking to establish a presence in the country.

According to the Investment Coordinating Board (BKPM), Switzerland was Indonesia's 15th biggest source of investment with $45.8 million in the first quarter of this year. Swiss companies invested $346.7 million in Indonesia last year, up 460.6 percent from a year earlier.

"The government of Indonesia highly appreciates the continued support of the government of Switzerland," National Development Planning Minister Bambang Brodjonegoro said in the same statement.

Last week the two governments signed an agreement about an automatic exchange of information, in accordance with the Common Reporting Standard (CRS) starting from 2018, with the first exchange in 2019, protected by data security assurance according to international standards.