Thursday, 26 April 2012 15:15

Offering Indonesia our best menu

Written by 

I WANT to see New Zealanders and Indonesians becoming more familiar with each other's countries and with the opportunities to travel and do business. After all, Indonesia is New Zealand's nearest Asian neighbour.

Our free trade agreement offers the prospect of greater commerce between our two countries. For example, New Zealand has had an FTA with China since 2008, and has since seen two-way trade increase 50%. China has now leapfrogged the United States to become our second-biggest trading partner and I would be delighted to see a similar expansion in trade between New Zealand and Indonesia, on the back of our own FTA.

New Zealand's experience is that FTAs are mutually beneficial and lead to increased prosperity for all the countries involved. They do so in many ways.

New Zealand is interested in more than just Indonesia's rapidly-expanding consumer market. We see the FTA as a means of developing, for example, business partnerships, two-way investment and a vibrant trade in services.

New Zealand has a lot to offer Indonesia. We are a reliable, competitive and high-quality source of food. We have technical knowledge and expertise that can help your country develop, build infrastructure and add value to the natural resources you have in abundance. We can continue to work with you, for example, in harnessing your large geothermal energy resources, we can contribute in niche areas such as air services and we can be a high-quality, cost-effective partner in educating the next generation of Indonesian leaders.

A number of the delegation are from the food and beverage sector. Indonesia has a rapidly growing population that wants to be fed and, increasingly, wants to be fed well. We see food security in Indonesia, as in most countries, as having two elements: increasing domestic agriculture production, and securing a reliable and complementary supply of imports. New Zealand can contribute to both these objectives.

Indonesia's consumption of protein is set to increase strongly... as incomes continue to rise. I understand per capita consumption of dairy products in Indonesia is about 11kg/year. That's where China was 10 years ago, and the Chinese now consume about 25kg/capita/year and rising.

Meeting such demand calls for an increase in domestic dairy production, alongside an increase in dairy imports. New Zealand can assist Indonesia with both these things.

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