Indonesia eyes investment opportunities in Laos
Indonesia eyes investment opportunities in Laos
Trade between Indonesia and Laos has increased from US$9.8 million in 2011 to US$37 million as of June this year, according to a high-ranking Indonesian official.
Speaking in Vientiane yesterday, Indonesian Ambassador to Laos Mr Irmawan Emir Wisnandar said “Trade between Indonesia and Laos is still far below the total trade between other Asean countries and Laos such as Thailand, Vietnam, Malaysia and Singapore.”
Mr Wisnandar was addressing a meeting between a delegation of Indonesian investors and senior trade officials, and Lao business operators and investment promotion officials, to discuss the possibilities for business investment and cooperation.
He went on to say that Indonesia’s export commodities are generally heavy equipment, vehicles and spare parts as well as pharmaceuticals and apparel.
“Indonesia imports coffee, herbal medicine, textile products and handicrafts from Laos,” he said.
Mr Wisnandar said trade between two countries faces a major challenge because there is no direct flight, which deters potential investors.
Prior to the coming into effect of the Asean Economic Community (AEC) next year, the two countries are seeking ways to boost trade volume in the years to come.
Yesterday’s meeting was a significant move for both countries and their investors towards building cooperation opportunities in the future.
“Until now, Indonesia has had no direct investment in Laos, but there are three joint ventures between Indonesian companies and companies from other countries with a total investment of US$106 million,” Mr Wisnandar said.
Deputy Minister of Planning and Investment, Dr Kikeo Chanthaboury, said Laos is open to foreign investment and willing to provide clearer information in relation to investment.
“This meeting offers a great platform for our two countries to meet and discuss business and investment cooperation in Laos so that we can boost our shared trade,” he said.
Dr Kikeo noted that Indonesia ranks 16th among foreign investors in Laos out of 50 countries.
Thanks to this meeting, Indonesian investors will be able to obtain more information regarding investment in Laos and possible trade cooperation between the two countries.
Representatives of the Indonesian Investment Coordinator Board and the Savan Park Special Economic Zone briefly explained the opportunities for investment in Laos and opportunities for trade cooperation.
The meeting allowed participants to learn about important factors in relation to investment opportunities in Laos, with a focus on wood processing, mining, agriculture, livestock, hotels, entertainment, restaurants, hospitals, education and hydropower.
Deputy Governor of Vientiane province Ms Singkham Khongsavanh, Vice Chairman of the Indonesian Investment Coordinator Board Mr Himiwan Hariyoga and other important guests were present at yesterday’s meeting.
The meeting was organised by the Embassy of the Republic of Indonesia to Laos in cooperation with the Lao Ministry of Planning and Investment, Lao National Chamber of Commerce and Industry (LNCCI), Indonesia Investment Coordinator Board, and the Indonesia Chamber of Commerce.
vientiane times
