19 May 2010
CHINA – ASEAN
Indonesia’s trade with China and ASEAN to grow enormously
Indonesian exporters have changed their export destination countries from developed countries to the developing countries, with China and ASEAN countries becoming two most regions they would exports their products within the next six months, according to the result of a survey carried out by the Hong Kong Shanghai Banking Corporation (HSBC) released on Tuesday.
Conveying the latest result of HSBC Trade Confidence Monitor survey, the Londonbased bank’s survey aimed at measuring the confidence of international businessmen to anticipate their business within the next six months, HSBC Indonesia Head of Trade and Supply Chain Vincent C Sugianto said that 51 percent of Indonesian respondents had trade businesses with counterparts in China.
Besides China, ASEAN countries are also apparently a region where Indonesian businessmen prefer to export their products to. “China and countries in Southeast Asia region would be continuously playing significant roles in terms of export destination countries forIndonesian exporters, particularly for small and medium-sized firms,” Vincent told a press conference here.
“The trade with China and ASEAN countries will be improving particularly after the implementation of ASEAN-China Free Trade Agreement (ACFTA) that took into effect since early this year,” Vincent said.
The survey aimed at finding each country’s confidence index was conducted in 17 countries, among others United Kingdom, Germany, the United States, China, Indonesia, Brazil, India and Vietnam. According to the survey result, Indonesia’s confidence index increased to 128, or significantly increased from 120 six months ago. It made Indonesia one of five countries with highest index scores, highly competitive to China’s that reached 120.
Forty-five percent of Indonesian respondents were optimistic that trade volume will be increasing within the next six months. Due such an estimation, 64 percent of Indonesian respondents said that they will need more trade financing service within that period.
Respondents regarded that exchange rate increasing interest rate would be the largest hurdles that hindered the trade activities.
(Xinhua, May 4)
PetroChina to invest 30% in Indonesia in 2010
Chinese oil and gas firm PetroChina is increasing investment in oil and gas exploration and development in Indonesia through its local subsidiary by 30 percent this year to boost oil lifting and counteract declining production, the Jakarta Post quoted an official as saying on Monday.
The company’s Vice President Budi Setiadi told the daily that PetroChina’s business subsidiary in Indonesia, PetroChina International Indonesia, had set aside as much as 491 million U.S. dollars and plans to increase the figure to 639 million dollars in 2010.
“We are carrying out aggressive exploration activities both to anticipate the natural decline and boost production,” said Budi.
He added that the company planned to drill 21 exploration wells this year. These exploration activities are estimated to cost the company 23 million dollars, including 2 million dollars for seismic survey.
PetroChina has set targets to produce as much as 106,000 barrels of oil equivalent per day (BPD) is operation in Indonesia, up from 104,000 BPD in 2009.
PetroChina Company Limited is part of the restructuring of China National Petroleum Corporation (CNPC).
(Xinhua, May 4)
