Receives Finnish Minister of Economy, Minister Suharso Discusses Various Collaboration Opportunities
Minister of National Development Planning/Bappenas Suharso Monoarfa received a visit from the Minister of Economy of Finland Nille Rydman, Director General of Business Finland Nina Kopola and a number of delegations from companies in various fields, Wednesday (31/01/2024).
The meeting discussed opportunities for cooperation between Finland and Indonesia, including efforts to apply Finnish knowledge in Indonesian Government projects, especially in the fields of energy, digitalization of society, and smart city development. It also includes a discussion regarding ongoing cooperation between Finland and the IKN Authority.
During the meeting, the Finnish Government presented a new policy aimed at promoting trade and development as well as encouraging investment by Finnish companies in Indonesia through foreign loan projects. This step was taken as part of efforts to strengthen economic cooperation between the two countries.
In achieving this goal, FinnFund, an institution under the Finnish Government, will provide financing facilities for development projects carried out by the private sector in Indonesia. These facilities include various schemes such as equity financing, corporate/project loans, and public-private partnerships.
Apart from that, FinnFund also plans to expand its financing facilities in Indonesia by collaborating with the National Development Planning Agency (Bappenas) to identify private projects that support national priorities.
In this context, Finnvera will provide financing facilities for Indonesia as an upper middle income country. This facility includes an export credit of up to 85% of the contract value or a maximum of EUR 20 million, which can be used to purchase Finnish technology and products.
However, the Finnish government’s financing facilities through the Public Investment Fund Facility (PIF) will end in June 2024 because Indonesia has achieved upper middle income country status.
However, the Indonesian Government still has the opportunity to submit concrete proposals to utilize the Public Investment Fund Facility (PIF) before the deadline. This proposal will be used by the Finnish authorities to inform the OECD, signaling the two countries’ commitment to continue enhancing economic cooperation in the future.
As additional information, export commodities from Indonesia to Finland that have been recorded include copper, rubber, ammonia, tableware, ceramics and fruit. Meanwhile, commodities imported from Finland to Indonesia include paper making machines, communication equipment, chemical sawdust and industrial equipment.
Apart from the commodities above, the Ministry of National Development Planning/Bappenas has also noted a number of potential products that can be exported to Finland, including copper, nickel, paper pulp, rubber and coffee.