01/04/2011 (Business Area) - The European Union plans to increase investment in Indonesia in recent years. The European Union saw the potential for substantial investments in Indonesia.

“So the dialogue continues and we are taking the study to the (investment),” said EU Ambassador to Indonesia, Julian Willson, in Jakarta, Thursday, March 31, 2011. Willson added, with this study can be seen where the sector most likely to be increased investment. The result will be known later, in May.

According to Willson, there are 700 European companies with an investment of U.S. $ 50 billion in Indonesia. These investments cover only 1.6 percent of the total EU investment in Asia.

First Secretary Economic and Trade Section of the European Union to Indonesia, Walter Van Hattum, said European companies are very interested in investing in the infrastructure sector in Indonesia. “We are very interested, especially the Indonesian government is also keen to invest in sector-very jealous,” said Walter Van Hattum. Walter argued that European parties have the experience and expertise in infrastructure development, and this has become one of their superiority.

The administration of President Susilo Bambang Yudhoyono is ready to enhance infrastructure development throughout the year. Funds budgeted to reach Rp126 trillion. Infrastructure became the center of attention, because the government intended to raise economic growth to seven percent per year. This year, the economy grew 6.4 percent target and the rise continued until the following years.

Walter was also seen, the manufacturing sector, automotive and food processing has the potential to become an investment destination in Indonesia, the European Union. The number of large population became one of the attractions. “The market is supported by large public purchasing power is also high,” said Walter.

Based on World Bank data, Indonesia currently has a total population of 220 million people with per capita income of U.S. $ 3,000. The number of middle class Indonesia in 2010 as many as 134 million people or 56.6 percent. This number increased rapidly compared to 2003, only 37.7 percent.

Walter said, Indonesia’s trade relations and the European Union until now dominated by commodities and mining sectors. “Exports of palm oil, coal, and furniture became one of the driving,” he said.

The value of trade of Indonesia and the European Union until 2010 to reach 20 billion euros or equivalent to Rp245, 3 trillion, with Indonesian exports to the EU valued at 14 billion euros, or Rp171, 7 billion. Walter explains, the potential for European companies to increase the export value was mainly in manufacturing and automotive.

However, he said there are some things of concern to European companies in investing in Indonesia, namely the certainty and security.