‘Coopetition’ pushed
Johnny Lumintang, ambassador of the Embassy of the Republic of Indonesia in Manila, discusses the possible sectors for Filipino businessmen to invest in Indonesia during yesterday’s trade mission at the Marco Polo Plaza Cebu. (CDN PHOTO/ JUNJIE MENDOZA)
This is not the time for competition but for ‘coopetition’
Ma. Teresa Chan, Cebu Chamber of Commerce and Industry president, gave this advice to both local and Indonesian businessmen and officials at the trade mission activity yesterday at the Marco Polo Plaza Cebu.
“We share the same challenges like being vulnerable to natural calamities and a lot more. We even look the same and share the same meaning of some words. We should promote more ‘coopetition’ and work together towards growth,” said Chan during the activity.
Chan also encouraged Indonesian investors to look at opportunities in Cebu especially in the four major industries which are real estate, construction, tourism and ICT or information and communication technology.
Indonesian businessmen, for their part, encouraged Filipinos to check out opportunities for trading, tourism and investments and maximize the 250 million local market in their more than 17,000 islands.
Indonesia looks ahead for various opportunities in partnership with other countries particularly those in the Asean region including the Philippines, said Johny J. Lumintang, ambassador of the Embassy of the Republic of Indonesia in Manila, during his speech at the trade mission activity yesterday.
Erna Herlina, first secretary and coordinator of economic division of the Embassy of the Republic of Indonesia, enumerated opportunities and also cited the same sectors for Filipinos to invest in.
These include opportunities for trade in agriculural products like cacao, coffee and palm oil; in fisheries including new fishing vessels, which Herlina noted is abundant here in Cebu.
“(There are) Also (opportunities) in minerals as we export a lot of coal, food and beverage, electronics and transportation equipment.”
In tourism, Herlina said, that Indonesia has a rising middle class which can already afford to travel to the Philippines.
“We can maximize our rising middle class and tap opportunities in tourism. We expect increased air connection between our countries soon,” she said.
In 2011, there are 45 million Indonesians belonging to the middle class. This is expected to reach 135 million by 2030, according to Herlina.
In 2013, there were 129,223 Filipinos who went to Indonesia and 45,582 Indonesians visiting the Philippines.
In investments, the government of Indonesia is prioritizing some sectors for investors to explore which includes energy particularly geothermal and renewable energy, which, she said, the Philippines has the technology.
“We can learn so much from you in terms of geothermal and renewable energy technologies. We also encourage investments in manufacturing with our labor cost at low level and with the huge number of our population in the working age,” she said.
Indonesia’s average minimum wage is only $200 every month and 55 million skilled workers as of 2011, which is projected to reach 113 million by 2030, she said.
Other possible sectors for Filipinos to invest in include oil refinery, machinery industries, communication equipment, infrastructure projects like seaports, toll-roads, railways, power plants and drinking water, food and beverage and chemical and pharmaceuticals.
“Now is the right time to invest in Indonesia as we expect local market opportunity to reach $1.8 trillion by 2030 for consumer services, agriculture and fisheries, resources and education,” she said.
As of 2013, total bilateral trade between Indonesia and the Philippines was $3.5 billion.
It is not a balanced trade yet as Indonesia enjoys a surplus of $1.9 billion as they export $2.7 billion worth of goods to the Philippines while the Philippines only export $802 million to Indonesia.
Indonesia imports mostly electronic products from the Philippines.