[Taiwan News]Indonesia potential investment market for Taiwan

As the director of Taiwan Association of Machinery Industry (TAMI) made a call to the Taiwanese government appealing for more agreements with ASEAN and other economic bodies to reduce tariff duties, many people from the industrial circle also responded. This was because the 5% tariff duty levied by ASEAN makes Taiwanese machine tools uncompetitive. The reduction in tariff is especially important now, as Indonesia has recently become top priority among the emerging markets for Taiwanese manufacturers and suppliers for the next decade.

Meanwhile, because historically Indonesia has no solid industrial base, there are now many foreign corporations coming and investing into the country and opening up the economy. Since the Japanese is the majority, the Taiwanese manufacturers are now leveraging on this chance to become their suppliers and hope to go even further by entrenching in the Indonesian market.

Although Indonesia used to be seen as falling behind economically, this image is now shattered by new global economic circumstances. Most of the important economic bodies are under the impacts of crises caused by the US and EU. However, Indonesia’s economy, on the contrary, is getting better and better these few years. It may be partly caused by foreign investments and also by the huge domestic needs.  Indonesia is the 4th most populated country in the world. With its trading and economic ties with other ASEAN’s countries, Indonesia is recognized as having a lot of potential.

In the metalworking and manufacturing exhibition in 2012, Taiwanese exhibitors organized a country pavilion, just like other foreign exhibitors from Korea, Mainland China, Thailand, Russia, Germany, and the US. This made the PT. Jakarta International Expo crowded with international buyers. This phenomenon indicated that the centers of industry and business are going to relocate to this country.

How other countries treat the emerging economies of ASEAN’s countries will determine their economic fortunes.  What they do now will affect the advantages they get in the next generation, like what happened when China was rising economically two decades ago. The Taiwanese authority should leverage on this trend and secure benefits for the industry.