Trade with China Targeted Reaches US$100 Billion

Jakarta (Antara Bali) - Indonesia sets a target of US$100 billion of trade value with China by 2016, an increase as compared to 2013's trade value at US$62 billion, Ambassador to China Sugeng Rahardjo stated here, on Monday.

"We must boost economic and cultural diplomacy in order to meet the trade value target," Sugeng pointed out.

The newly appointed ambassador also called on Indonesian businessmen, especially those coming from small and medium enterprises, to continuously innovate and create new products. Innovation was one of the ways for Indonesian products to penetrate China's market and compete with Chinese products in the global market, he added.

Ambassador Sugeng also expressed optimism about an increase in the number of Chinese tourists visiting Indonesia in the future. "Currently there are 800 thousand Chinese tourists coming to Indonesia every year. In three years, we expect to attract about three million tourists from China," he pointed out.

Earlier, Trade Minister Gita Wirjawan stated that trade between Indonesia and China could grow to US$100 billion in value if China succeeds in its program to create a consumption based economy.

"The annual trade value could increase to US$80 billion - US$100 billion in the following several years after China changes its economic structure," Gita added.

According to the minister, Chinese domestic consumption is still below 30 percent of its Gross Domestic Product (GDP), and now it is seeking to raise the portion.

Indonesian consumption already reached 55 percent of the country's GDP. He noted that the world's second largest economy is shifting its focus of development to its western regions.

In future, Chinese industry will no longer be export oriented but a bigger part of its manufacturing production will be for domestic consumption, he pointed out. (*/DWA)