Indonesia and Denmark are embracing a new level of bilateral relations as the Scandinavian country expresses its interest in boosting investment particularly in green technology and sustainable development and to doubling trade by 2016.

Seeking to explore business opportunities and strengthen bilateral relations, Danish Trade and Investment Minister Pia Olsen Dyhr arrived in Indonesia on Monday with a business delegation. They attended a discussion with their local counterparts to forge commercial links between the two nations at the Four Seasons Hotel in Jakarta.

Danish ambassador to Indonesia Martin Bille Hermann said the delegation included 13 companies from various sectors, mainly energy and infrastructure, adding that the discussion was aimed at “sitting the companies from both countries down together to talk and examine possibilities,” and later letting the Danish companies share their technology, know-how and other experience.

Hermann said that Denmark had even prepared an economic growth strategy for Indonesia that would focus on green technology in infrastructure, energy, industry and healthcare and would like to strengthen other interactions. He acknowledged the paucity of investment and trade between the two nations.

“From the Danish point of view, we would like to see our exports to Indonesia double by 2016,” he said.

Denmark’s exports to Indonesia have traditionally been lower than those of other European
countries like Sweden and Germany. In 2011, Indonesia was the 60th biggest export destination for Danish firms.

According to Danish statistics, exports expanded by 70 percent to US$180 million last year, which is seen as a positive sign for achievable growth in the future.

In terms of investment, Denmark also lags behind other European countries, investing only $100 million in three projects last year, and it accounts for less than one percent of the country’s total foreign investment, according to data at the Investment Coordinating Board (BKPM).

Dyhr, the visiting minister, said that Indonesia’s fast growing economy, projected to be in the list of the world seven biggest economies in 2030, and its commitment to maintain sustainable development, had attracted the Scandinavian country to spend more in Indonesia.

“[Indonesia’s] impressive performance over the last year has brought immense opportunities, but also challenges, and increases pressure in key areas in your economy and the demand for smarter, green and cleaner technology. This is where Denmark has something to offer, this is where you need us,” Pia said during her speech

“You can offer us a role in your fast-paced economic growth, which we don’t see in Europe at this time,” she added.

Dyhr said that Denmark was ready to spend $50 million to fund a study to develop sustainable energy and environment, especially to develop a wind-based power plant, technology which the country itself has applied in the last two decades to reduce its dependence on non-renewable energy.

Denmark, one of the 20 richest countries in the world based on income per capita thanks to its sizeable shipping and oil reserves, is the first country in the world to be committed to leading the transition toward a green growth economy entirely non-reliant on fossil fuels by 2050 and has become a global leader in the development of new sustainable technologies since 1980.

Some of Danish’s technology, Hermann said, had been applied in Indonesia, including a high quality pump in Pluit, Jakarta, to prevent flooding in the area. The country is also developing technology to limit incidents in the oil and gas sector, and to reduce air pollution at refineries and convert dangerous gas into a“valuable commodity”.

Tamba Hutapea, BKPM’s deputy director for investment planning, said that he welcomed any possible cooperation, adding that Indonesia was ready to facilitate the prospective investment with tax holidays and providing import duty facilities.

“Denmark as a developed economy equipped with strong technology and Indonesia as a developing economy with strong economic growth and a large population have great responsibility to improve our bilateral economic relations especially in investment,” Tamba said. (aml)

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