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Jakarta Post

UK’s Cameron arrives in Jakarta, 30 top execs in tow

“Go east” is what economists say, given the current prospects for business amid financial turmoil in Europe and the sluggish economic recovery in United States

Bagus BT Saragih (The Jakarta Post)
Jakarta
Wed, April 11, 2012 Published on Apr. 11, 2012 Published on 2012-04-11T08:32:08+07:00

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“Go east” is what economists say, given the current prospects for business amid financial turmoil in Europe and the sluggish economic recovery in United States.

And east is exactly where UK Prime Minister David Cameron is headed, with Indonesia listed as the next stop in his Asian tour, following a visit to Japan.

Cameron is due to arrive in Jakarta on Wednesday, accompanied by executives from top British companies, mostly from the energy, construction, pharmaceutical and defense sectors.

The prime minister has been slated for several state functions during his two-day visit, as he explores opportunities for his beleaguered nation’s businesses in Southeast Asia’s largest economy

“The main agenda of the prime minister’s visit is to bolster ties in trade, investment and education,” Teuku Faizasyah, President Susilo Bambang Yudhoyono’s spokesman for foreign affairs, said on Tuesday, declining to discuss specific initiatives.

According to Faizasyah, the British delegation would visit the Kalibata Heroes Cemetery in South Jakarta, participate in a business forum with top Indonesian executives before attending a meeting with Yudhoyono at the Presidential Palace at 3 p.m.

The business forum will be held at the Mandarin Hotel at 1:30 p.m., and is expected to be attended by Trade Minister Gita Wirjawan; his British counterpart, Lord Green; 30 British executives and 50 Indonesian corporate leaders.

The chairman of the Indonesian Chambers of Commerce and Industry’s (Kadin) international organizations cooperation committee, Maxi Gunawan, said the forum would serve as a feasibility assessment. “No concrete deals will be made,” he said.

Bilateral trade between Indonesia and the UK has risen by around 10 percent a year, topping US$2.89 billion in 2011, up from $2.63 billion in 2010, according to the Trade Ministry. Indonesia also maintained a trade surplus of $545 million with the UK last year.

Meanwhile, the UK is also among the top 10 investors in Indonesia, spending around $419 million last year, down from $1.89 billion in 2010.

Indonesia is also a promising market for the UK, as evinced by Rolls-Royce’s announcement in November of an order from flag carrier Garuda Indonesia for US$280 million in airplane engines and maintenance.

Foreign Minister Marty Natalegawa said that Yudhoyono was also eager to expand diplomatic relations with the UK to help ease tensions in the Middle East and to promote democracy in Myanmar, which Cameron is slated to visit on Friday.

“We believe the process of democratization in Myanmar has been effective. We will also continue to urge the European Union and the United States to lift their sanctions on Myanmar,” Marty said. “President Yudho-yono is committed to raising this issue with the British prime minister.”

Cameron is the second prime minister to visit Indonesia in the last six years, following Tony Blair’s visit in 2006, when Cameron was in Blair’s entourage.

Queen Elizabeth visited Indonesia in 1974, and members of the Royal Family have regularly visited the nation, most recently Prince Andrew, who came to Indonesia last year.

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