Sri Lanka to gain from Indonesia’s commitment to fostering economic partnerships
The Morning: COYLE recently announced that it held talks with Ambassador Extraordinary and Plenipotentiary of Indonesia Dewi Gustina Tobing. During the lengthy discussions, a number of significant points were raised and concerns addressed.
The Ambassador highlighted that Indonesia has demonstrated its commitment to fostering economic partnerships, not only within its borders but also on a global scale. Sri Lanka stands to gain from this openness, with opportunities for mutual benefit. The prospect of identifying and leveraging outbound investments was emphasized, potentially leading to increased economic activity between the two nations.
One of the most valuable lessons Sri Lanka can take from Indonesia is its ability to maintain a robust tourism industry even during times of crisis. Indonesia’s consistent success in retaining a massive influx of inbound tourists, even in the face of adversity, underscores the importance of separating internal political struggles from managing external crises. Sri Lanka could benefit greatly from adopting a similar approach to safeguard its attractiveness to tourists.
In addition to these focal points, the meeting also highlighted the thriving collaboration between Sri Lanka and Indonesia. Both nations expressed keenness to explore avenues for increased trade, particularly in industries like batik production. Notably, the trade volume between the two countries has seen a remarkable 6% increase in recent years, growing from 49 million to 475 million in 2021.
It was revealed that Indonesia’s diverse economy, supported by sectors such as manufacturing, agriculture, and services, presents numerous opportunities for partnership. Trade, tourism, and the exploration of new avenues for cooperation are central to the objectives of strengthening the relationship between Sri Lanka and Indonesia, encompassing both economic and cultural aspects.
It is worth noting that despite the significant Muslim population in Indonesia, there is also a flourishing Buddhist community, showcasing the nation’s religious diversity. Indonesia’s substantial share of the global economy, at 45%, further solidifies its status as an economic powerhouse that values and supports its entrepreneurs. Meanwhile, when a question on how Sri Lanka and Indonesia could work together for mutual economic benefit was raised, it was revealed that the pharmaceutical and pharmaceutical products sector was ripe for collaboration.
The meeting between COYLE and Ambassador Dewi Gustina Tobing served as a promising step towards greater economic cooperation between Sri Lanka and Indonesia. Despite any perceived complexities, the potential benefits of partnership between the two countries are substantial, with the prospect of mutual growth and shared prosperity.
OSL take:
Sri Lanka enjoys strong bilateral and trade ties with many countries in the region including Indonesia, which has been identified as an emerging economy in the next few years. Sri Lanka is also looking at forming a solid trade partnership with Indonesia through a free trade agreement (FTA). There are already several sectors where Indonesia has partnered with Sri Lanka and given the success recorded by these ventures, there’s potential for further expansion. Some of the areas of collaboration include agriculture and health, especially in the pharmaceutical sector. With Sri Lanka’s economy on an overall expansion path, there’s a growth in the business/investment opportunities in the agriculture and health sectors. The increasing demand in these sectors given the overall increase in economic activities, the incentives offered by the local authorities for foreign businesses entering the Sri Lankan economy and the growth and profits recorded by Sri Lanka’s private sector engaged in these sectors provide the best environment for Indonesian businesses/investors to explore the business/investment opportunities in the country’s agriculture and health sectors. Indonesian businesses could also look at forming partnerships or joint ventures with local businesses with the aim of further expansion locally and internationally.
| Article Code : | VBS/AT/20231004/Z_3 |