Myanmar businesses eye closer ties with Indonesia

Myanmar businesses eye closer ties with Indonesia.The 22-member delegation expressed optimism underpinned by Myanmar's better political climate and enabling business environment.

Halim Alamsyah, head of the delegation and chairman of Indonesia Deposit Insurance Corp, said on the sidelines of a business-matching event that further cooperation is anticipated with focus on promising sectors like agribusiness, oil and gas, telecommunications, tourism and education.

Businesses in the delegation also operate in other industries like crude oil, palm oil, logistics, warehousing, biomass, insurance, banking, real estate, construction, paper business, pharmaceutical production and distribution, distribution of animal feed and industrial parts.

"We are looking forward to seeing more Indonesian business people visit Myanmar to enhance Myanmar people's capacity," he said.

According to the Indonesian embassy, more than 500 Indonesian business people are currently active in Myanmar, mostly operating in such sectors as logistics support, telecommunications, agribusiness, and poultry. However, according to Myanmar's Directorate of Investment and Company Administration, only 13 Indonesian businesses have been permitted to invest. Their investment of US$254.69 million accounts for only 0.4 per cent of total approved foreign direct investment. To date, Indonesia stands 13th in the nation's foreign investors' list.

Bilateral trade is growing, though. The Commerce Ministry's data shows the value rising to $741.79 million in fiscal year 2015-16, nearly $100 million higher than in the previous fiscal year and more than $200 million higher than in 2013-14.

Alamsyah expects bilateral economic relations to strengthen in the next five years, saying Myanmar's economic policy would further brighten the outlook. "That will attract a lot of investments," he said, adding that even global economic uncertainties would not get in the way.

Harryansah Khairul, counsellor at the Indonesian Embassy, said more businesses plan visits to Myanmar, lured by abundant the country's natural resources and potential in many areas.

"We have seen very positive developments in Myanmar since the past three years. You have very impressive economic growth and lot of room for mutual cooperation," he said.

Kyaw Dewa, managing director of UKD World Class International Co and a member of the Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI)'s chief executive committee, also believed that economic reforms would draw more trade and investment from Indonesia.

"We wanted to Indonesian businesses to know about the favourable conditions in Myanmar, the economic opportunities, tax holiday, etc. Nowadays, many foreign businesses are interested in our special economic zones, particularly Thilawa SEZ where one-stop service is available. We believe that the more they know about our regulations, the more they would want to invest here," he said.

According to Kyaw Dewa, the hot sectors in Myanmar right now are infrastructure development (ports, rail ways, roads, airport, etc), telecommunications, energy and electricity, mining and exploration, agribusiness, textile and fashion, healthcare, water and water treatment, and real estate.

Myo Thet, vice president of UMFCCI, pledged to provide any possible assistance to grow economic relations with Indonesia, vowing a "new era of economic development".