Jordan urges Indonesian investors to benefit from EU trade deal

AMMAN — Jordan is encouraging Indonesian investors to explore opportunities in the Kingdom and to benefit from Amman’s recent trade deal with Europe, a government official said on Monday.

By moving production to Jordan, Indonesian manufacturers could benefit from tariff exemptions when exporting to Europe, said Deputy Prime Minister for Economic Affairs and Minister of Industry, Trade and Supply Jawad Anani.

In July, the EU relaxed the “rules of origin” for Jordanian exports to Europe. Under the deal, manufacturers in Jordan can import up to 70 per cent of the raw materials used in production, and still label the finished products as “Made in Jordan”, qualifying them for trade concessions. 

The EU agreement aimed to minimise the losses to Jordan’s economy, after regional unrest led to the closure of the Kingdom’s borders with Syria and Iraq and the loss of key markets and trade routes. 

Speaking at a meeting with of members of the business community from the two countries, as well as representatives from Palestine and Iraq, Anani said there was room to expand Jordanian-Indonesian business and trade relations.

The Indonesian economy has grown fast to become “the next promising economy” from an international perspective, he said, adding that Indonesia succeeded in streamlining its natural resources and developed strong governance and anti-corruption measures.

“Indonesia is a country that if you invest in, it will impact your country’s economy positively,” Anani added, citing tourism as a particularly promising sector.

He said the current three weekly direct flights to Indonesia could “easily” be expanded to five or six to encourage the movement of people and goods.

For his side, Indonesian Ambassador to Jordan Teguh Wardoyo urged the Jordanian business community to fully utilise the prospective Indonesian market, noting the country’s population of 255 million.

While total trade value between the two countries reached $500 million in 2012, it dropped to $139 million in 2016 due to regional turmoil and border closures.

“We have to work together to address this… the trade value does not reflect the true potency of commerce between the two nations,” said the diplomat, who highlighted Jordan as a country with a skilled workforce and strong banking and financial sectors.

To facilitate business-to-business connections, the 31st Trade Expo Indonesia 2016, which will be held in Jakarta from October 12 to 16, will showcase Indonesian exports in the fields of industry, mining, agriculture and crafts.

Indonesia’s gross domestic product in 2015 reached $915 billion, with a registered economic growth of 4.7 per cent. Indonesian international trade in 2015 reached almost $300 billion, according to official figures.