Vision Group Report: Invigorating the Indonesia-EU Partnership
Vision Group Report: Invigorating the Indonesia-EU Partnership Vision Group Report: Invigorating the Indonesia-EU Partnership
88 Rapidly expanding services sector is contributing more to economic growth and job-creation worldwide than any other sector. The services sector accounted for three-quarters of the gross domestic product for the European Union (EU) and 53% for Indonesia in 2010. Indonesia’s trade in services with the European Union has increased during the last 6 years, but the trade deficit has widened due to an increase in the imports of different business services from the EU. Indonesia’s services’ exports to the EU amounted to 2 billion USD and imports from the EU reached 3 billion USD in 2009. Indonesia has remarkable potential to increase its services exports to the European Union and convert the trade deficit into a trade surplus. 3000 2500 2000 1500 1000 500 0 Source: Eurostat. Indonesia has a comparative advantage vis-à-vis the European Union in labour-intensive services: tourism, transportation and construction. New potential export opportunities are also emerging in communication, IT and business services. In 2009 Indonesia mostly exported to the EU tourism and transport services, when the EU mainly offered to Indonesia business, transport and IT services. Source: Eurostat. Services 2004 2005 2006 2007 2008 2009 Indonesia's services exports to the EU in 2009, mln USD Indonesia's services imports from the EU in 2009, mln USD Indonesia's services exports to the EU in 2009 15% 3% 3% 3% 5% 20% 6% 38% Personal travel Business travel Sea transport Air transport Other transport Business services Government services Comm. services Construction services Financial services IT services Insurance services XVIII SERVICES Indonesia's services imports from the EU in 2009 4% 5% 5% 5% 7% 11% 15% 39% Business services IT services Sea transport Air transport Royalties and licenses Personal travel Financial services Government services Insurance services Construction services Comm. services Business travel Other transport
Indonesia could increase its export revenues from tourism, both leisure and business travel. Indonesia attracted 7 million foreign tourists in 2010 that spent around $1,000 each. Around 59% of all visitors travelled to Indonesia for holiday, while 38% for business purposes. Three quarters of Indonesia’s visitors came from the Asia-Pacific region, with Singapore and Australia among the top countries of origin. Only less than 1 million Europeans visited Indonesia in 2010, spending around 1500 USD each. Maximising export revenues from tourism is dependent on the necessary and efficient infrastructure being in place. Tourists rely on efficiently operating transport, telecommunications and financial services. Indonesia needs to develop these essential services for the benefit of tourism but also other sectors. European investors are interested in infrastructure development in Indonesia and Indonesia could benefit from their knowledge and financial resources. The archipelago of more than 17,500 islands has beaches, mountains and dive-spots among its diverse attractions, but tourism infrastructure outside Bali is often poor. Indonesia is also well behind its tiny neighbour Singapore, which attracts around 10 million tourists a year, and Malaysia, which sees around 20 million foreign tourist arrivals every year. Air traffic between Indonesia and Europe is expected to increase. Garuda Indonesia has managed to re-establish its foothold in the European air cargo market in 2010 and plans to expand its network in Europe in the coming years. Transportation sector in Indonesia benefits from strong economic growth and trade flows. The EU is the most important foreign investor in the transportation sector in Indonesia, providing 50% of total FDI. During the last seven years, the EU has invested 3.2 billion USD (1.2 billion USD in 2010) in the transportation, storage, and communication sector of Indonesia. 89
- Page 40 and 41: 38 14 Communication strategy
- Page 43 and 44: PRODUCT SECTORS OF SPECIAL IMPORTAN
- Page 45 and 46: are concerns in Indonesia over poss
- Page 47 and 48: nature of complex and fairly aggreg
- Page 49 and 50: to exploit potentially beneficial c
- Page 51 and 52: In the political cooperation area,
- Page 55 and 56: BACKGROUND NOTES 53
- Page 57 and 58: 2. DEVELOPMENTS Even though the tra
- Page 59 and 60: 1. to complete its ambitious negoti
- Page 61 and 62: Data collected from an investment s
- Page 63 and 64: direct recourse to international ar
- Page 65 and 66: 2.2. EU Member States EU Member Sta
- Page 67 and 68: - Component 2 (implemented by UNICE
- Page 69 and 70: 7. Indonesia to improve the investm
- Page 71 and 72: Indonesia is the largest timber exp
- Page 73 and 74: 3. TECHNICAL COOPERATION The REACH
- Page 75 and 76: The implementation of National Indo
- Page 77 and 78: Cooperation and coordination betwee
- Page 79 and 80: The proposal also puts forward a ne
- Page 81 and 82: The EU’s objectives are to secure
- Page 84 and 85: 82 1. INTRODUCTION Indonesia and th
- Page 86 and 87: In the last decade, the expansion o
- Page 88 and 89: Indonesia’s automotives industry
- Page 92 and 93: There is remarkable scope for coope
- Page 94 and 95: In Indonesia the processed foods in
- Page 96 and 97: Electronics is Indonesia’s larges
- Page 98 and 99: One of the fastest growing segments
- Page 100 and 101: The textile, clothing and footwear
- Page 102 and 103: 100
- Page 104: Delegation of the European Union In
88<br />
Rapidly expanding services sector is contributing more to economic growth and job-creation worldwide than any<br />
o<strong>the</strong>r sector. The services sector accounted for three-quarters of <strong>the</strong> gross domestic product for <strong>the</strong> European Union<br />
(<strong>EU</strong>) and 53% for <strong>Indonesia</strong> in 2010.<br />
<strong>Indonesia</strong>’s trade in services with <strong>the</strong> European Union has increased during <strong>the</strong> last 6 years, but <strong>the</strong> trade deficit has<br />
widened due to an increase in <strong>the</strong> imports of different business services from <strong>the</strong> <strong>EU</strong>. <strong>Indonesia</strong>’s services’ exports to<br />
<strong>the</strong> <strong>EU</strong> amounted to 2 billion USD and imports from <strong>the</strong> <strong>EU</strong> reached 3 billion USD in 2009. <strong>Indonesia</strong> has remarkable<br />
potential to increase its services exports to <strong>the</strong> European Union and convert <strong>the</strong> trade deficit into a trade surplus.<br />
3000<br />
2500<br />
2000<br />
1500<br />
1000<br />
500<br />
0<br />
Source: Eurostat.<br />
<strong>Indonesia</strong> has a comparative advantage vis-à-vis <strong>the</strong> European Union in labour-intensive services: tourism,<br />
transportation and construction. New potential export opportunities are also emerging in communication, IT and<br />
business services. In 2009 <strong>Indonesia</strong> mostly exported to <strong>the</strong> <strong>EU</strong> tourism and transport services, when <strong>the</strong> <strong>EU</strong> mainly<br />
offered to <strong>Indonesia</strong> business, transport and IT services.<br />
Source: Eurostat.<br />
Services<br />
2004 2005 2006 2007 2008 2009<br />
<strong>Indonesia</strong>'s services exports to <strong>the</strong> <strong>EU</strong> in 2009, mln USD<br />
<strong>Indonesia</strong>'s services imports from <strong>the</strong> <strong>EU</strong> in 2009, mln USD<br />
<strong>Indonesia</strong>'s services exports to <strong>the</strong><br />
<strong>EU</strong> in 2009<br />
15%<br />
3%<br />
3% 3%<br />
5%<br />
20%<br />
6%<br />
38%<br />
Personal travel Business travel<br />
Sea transport Air transport<br />
O<strong>the</strong>r transport Business services<br />
Government services Comm. services<br />
Construction services Financial services<br />
IT services Insurance services<br />
XVIII SERVICES<br />
<strong>Indonesia</strong>'s services imports from <strong>the</strong><br />
<strong>EU</strong> in 2009<br />
4%<br />
5%<br />
5%<br />
5%<br />
7%<br />
11%<br />
15%<br />
39%<br />
Business services IT services<br />
Sea transport Air transport<br />
Royalties and licenses Personal travel<br />
Financial services Government services<br />
Insurance services Construction services<br />
Comm. services Business travel<br />
O<strong>the</strong>r transport
Change language