Taiwan and Indonesia signed a memorandum of understanding on comprehensive economic cooperation Monday to forge closer business ties.
John C. Chen (陳忠), head of the Taipei Economic and Trade Office in Indonesia, and Didi Sumedi, head of the Indonesian Economic and Trade Office in Taipei, inked the MOU on behalf of their individual countries.
Taiwan’s Minister of Economic Affairs Shen Jong-chin (沈榮津) and Deputy Economics Minister Wang Mei-hua (王美花) witnessed the signing of the MOU.
Chen said the agreement is part of the Taiwan government’s efforts to push for exchanges under its New Southbound Policy, which seeks to reduce economic dependence on China.
Under the economic cooperation MOU, Chen said, Taiwan and Indonesia will set up a platform for bilateral communication so that they can cooperate in areas such as infrastructure and the establishment of special economic zones.
In addition, the two countries will work together on trade, industrial development, investment, agriculture, and training courses for government officials, he said.
The MOU will serve as a framework for the establishment of working groups that will map out specific cooperation projects, which is expected to help Taiwanese investors in Indonesia obtain more business opportunities, according to Chen.
He said the MOU will also help Taiwanese companies gain greater visibility in Indonesia and increase their market share there.
Meanwhile, Indonesia’s industrial development will be upgraded as Taiwan investment increases, while more jobs will be created there, which will help grow the economy, Chen said.
Indonesia is keen to work on infrastructure with Taiwan, which has a good reputation in that field, he said.
The New Southbound Policy, launched by the administration of President Tsai Ing-wen (蔡英文), seeks to promote better relations with the members of the Association of Southeast Asian Nations (ASEAN), including Indonesia, and South Asian countries, as well as New Zealand and Australia.