"Bilateral trade between Indonesia and New Zealand will receive a boost due to the positive impact of a trade agreement between Indonesia and Australia," Trade Minister Thomas Lembong stated.
Jakarta (ANTARA News) - The governments of the Republic of Indonesia (RI) and New Zealand have agreed to step up cooperation in various sectors including agriculture, e-commerce, trade and investment.

Efforts to increase cooperation between the two countries will be reinforced with the visit to Indonesia of New Zealand Prime Minister John Key along with 22 CEOs of noted companies operating in various fields.

To mark the strong agricultural partnership between Indonesia and New Zealand, John Key visited PT Fonterra Brands Indonesias Cikarang manufacturing facility in West Java on Tuesday to celebrate strong agricultural ties with Indonesia.

PT. Fonterra Brands Indonesia is a multinational company which owns and markets high quality dairy products that provide health and natural dairy nutrition.

The companys strong brand portfolio of Anlene, Anmum, Anchor Boneeto, Chesdale, and its constant drive for innovative and original products have given the company added strength to provide global reach with a local touch.

Keys visit to Fonterra Brands Indonesia coincided with a visiting delegation which included New Zealand Trade Minister Todd McClay, representatives from Indonesias Ministry of Agriculture, Fonterras Chief Operating Officer of Farm Source, Miles Hurrell, and President Director of Fonterra Brands Indonesia, Achyut Kasireddy.

On the occasion, the New Zealand prime minister expressed hope that investment by the dairy industry in Indonesia through Fonterra plant can be expanded so that the need for protein nutrients can be increasingly met through milk products.

"I hope Fonterra, as one of the leading companies in New Zealand, can expand its investment in Indonesia to meet the needs of local communities," Key remarked.

He noted that Fontera was an example of investment made by a New Zealand dairy company, which has been successful in Indonesian and Asian markets through its leading products such as Anlene, Anmum and Anchor Boneeto.

Built to meet Indonesias growing demand for dairy, Fonterras Cikarang site has the capacity to blend and pack up to 87,000 packs of Anlene, Anmum and Anchor Boneeto dairy brands each day.

The Rp340 billion (NZD $36 million) facility was opened in September last year and is the dairy co-operatives largest investment in the ASEAN region in the last decade.

President Director of Fonterra Brands Indonesia, Achyut Kasireddy, said New Zealand and Indonesia have shared a positive relationship over the past 65 years, and as New Zealands largest company, Fonterra has been flying the New Zealand flag in Indonesia for over 30 years.

"It is a great honor to host both the New Zealand Prime Minister and Deputy Minister of National Development Planning here today, alongside other dignitaries, to celebrate both countries strong agricultural and business relationship," Kasireddy remarked.

In the meantime, New Zealand Minister of Trade Todd McClay welcomed Fonterras investment and said it reinforced the exciting opportunities available for New Zealand companies in Indonesia.

"This is a market with large potential. Fonterras longstanding commitment to Indonesia should encourage other New Zealand companies to play a greater role," McClay noted.

He added that Indonesia is one of Fonterras priority markets where the dairy co-operative sees huge potential for growth.

"Our investment in this sector allows us to produce more high quality dairy nutrition to meet Indonesians increasing demand for dairy products," he affirmed.

In addition, the two countries have agreed to cooperate in the e-commerce sector following the signing of an agreement between MatahariMall.com and Fishpond, which is expected to open a broader market in this digital era.

"Through this cooperation, we want to be the number one, and our consumers will be able to access more quality products. We will focus first on the consumers in Indonesia," Hadi Wenas, the CEO of MatahariMall, remarked here on Monday.

Wenas noted that Indonesias e-commerce sector had grown in the last two to three years, and in cooperation with Fishpond, the country will gain valuable experience.

"This cooperation is of interest to us, as we can learn what type of products can be sold, especially in emerging markets. In the long term, we want to expand the reach of local products to global markets through Fishpond," he emphasized.

According to Wenas, Indonesias current challenge is the shift from offline to online trading. Once the local products are marketed at the national level, then the global market will be the next target.

On the occasion, Ben Powles, the CEO of Fishpond, affirmed that this form of cooperation will offer a wide selection of quality products to customers, especially in Indonesia. This time, the focus will be on how to bring quality products to the domestic market.

"Our focus now is to bring the products into Indonesia and we will aim to sell Indonesias products in the global market," Powles remarked.

In addition to cooperation in the e-commerce sector, Indonesia and New Zealand have also signed a cooperation agreement in the aviation and electricity sectors.

In the aviation sector, FlyBest Flight Academy and Ardmore Flying School have agreed to offer training to pilots from Indonesia.

In trade sector, Trade Minister Thomas Lembong stated after attending the New Zealand-Indonesia Business Forum on Monday that the government was aiming to increase trade transactions with New Zealand to US$3 billion by 2024, while the current value of bilateral trade reaches approximately US$1 billion.

"In 2024, we want to increase trade relations from approximately US$1 billion to US$3 billion," Lembong said, explaining that some of the products to be encouraged to boost the value of bilateral trade include agricultural products and also raw materials for feed, while New Zealand will supply milk and its derivative products.

In addition to these products, he hoped for an increase in trade transactions in sectors, such as education, e-commerce, tourism, and services.

"We also want to witness a growth in sectors such as education, e-commerce and of course, tourism, and services in the 21st century," Thomas emphasized.

The minister added that Indonesia was focusing on collaborating with Australia, which is also expected to boost trade with New Zealand. Indonesia is also prioritizing establishment of multilateral cooperation.

"Bilateral trade between Indonesia and New Zealand will receive a boost due to the positive impact of a trade agreement between Indonesia and Australia, while we are still focusing on cooperation in forums such as the WTO and RCEP as part of efforts to have multilateral cooperation," Lembong remarked.(*)

Reporter: Otniel Tamindael
Editor: Heru Purwanto
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