Kenssy Dwi Ekaningsih has served as the country’s ambassador to the Czech Republic since 2019, giving her extensive experience in our bilateral relations. In the interview for TRADE NEWS, she encourages Czech companies with advanced technologies particularly in transportation, industry and environmental sectors to give more focus to investment projects in Indonesia.
When we last spoke four years ago, you talked about the growing middle class and expanding production capacities in Indonesia. How have these factors influenced trade relations with the Czech Republic in recent years?
The development of the middle class and the increase in production capacities in Indonesia support the export of Indonesian products to the Czech Republic, provided they meet European and Czech regulatory requirements. The growth of the middle class also presents new opportunities for both countries. Stronger workforce in Indonesia is a prerequisite for Czech investment in our country, while increased consumer spending boosts trade exchange and serves as a driving force of the Indonesian economy.
One example of this are the new opportunities for Czech investment in Indonesia that leverage the local workforce. Increased consumption of goods, in turn, contributes to more active trade exchange, which can further boost Indonesian exports to the Czech Republic.
Which sectors of the Indonesian economy do you consider the most promising for Czech investors? Are there any new areas of cooperation that could be attractive to Czech businesses?
Sectors such as energy, healthcare or infrastructure development may be of particular interest to Czech investors. Other investment priorities include the digital economy, green and blue economies, creative industries and other sectors. Indonesia also offers incentives for investors, such as tax holidays, exemptions and duty-free imports. In addition, the Ministry of Investment and Industry (Indonesia Investment Coordinating Board) provides comprehensive services to facilitate investments.
Czech investors can use the comprehensive services of the Ministry of Investment and Industry (Indonesia Investment Coordinating Board).
The Indonesia Investment Promotion Centre (IIPC) recently reported that the Indonesian government has approved six special economic zones across the country, which are expected to create over 1.4 million jobs. Can you give our readers from Czech businesses more details about these investment opportunities?
According to the available information from the Ministry of Investment and Industry, there are currently over 80 sustainable investment projects worth a total of 15.9 billion USD, covering six priority sectors and spread across Indonesia.
The manufacturing industry has a total of 39 projects worth 11.2 billion USD, infrastructure has 9 projects worth 3.34 billion USD, food and agriculture is covered by 14 projects worth 632 million USD. Furthermore, tourism has 13 projects worth 516 million USD, industrial real estate is represented by 4 projects worth 221 million USD and renewable energy has 2 projects worth 58 million USD.
All of these projects are located across various regions of Indonesia, including the provinces of Banten, West Java, East Java, East Kalimantan, West Kalimantan, North Sumatra, South Sumatra, West Sumatra, Riau Islands, South Sulawesi, West Sulawesi, Papua, the Moluccas, and many others.
Detailed information about these locations is available on the website regionalinvestment.bkpm.go.id.
During our last interview, you also mentioned the importance of patience and empathy when building business relations with Indonesians. What other cultural aspects should Czech entrepreneurs consider when entering the Indonesian market?
Indonesians continue to place great emphasis on respecting the older generation in both business and interpersonal relationships. Decision-making is often based on consensus, whether in organizational, business or personal matters.
Building personal relationships is a key prerequisite for formal business negotiations. Indonesians prefer to do business with people they know and trust. Communication is also an important aspect, so maintaining close contact through messages or follow-up meetings helps build long-term trust. In general, doing business in Indonesia requires patience, as decision-making can take a long time. Therefore, it is important to remain polite, engage in direct communication and demonstrate respect in all touchpoints and interactions.
You have served as Ambassador to the Czech Republic since 2019. What are your strongest personal experiences from your time here?
One of the most significant experiences during my tenure in the Czech Republic was the bilateral meeting between the Indonesian President and Prime Minister Petr Fiala at the presidential Bogor Palace in April 2023. During the event, the leaders agreed to continue cooperation in strategic sectors, Industry 4.0 and the development of environmentally friendly technologies.
For good business relationships, it is important to remain polite and demonstrate respect.
What are your visions and goals for the further development of Indonesian-Czech relations in the coming years?
My vision is to continue to support the development of bilateral relations between Indonesia and the Czech Republic across multiple areas, both at the governmental and people-to-people levels. I see great potential for further expansion in both trade and cultural exchanges. These are the areas I will keep focusing on in order to achieve even closer cooperation between our countries.
I believe that the positive development of bilateral relations between the Czech Republic and Indonesia, as well as confidence in the stability of our new government, will raise more interest among Czech companies and attract more foreign investment to Indonesia.
Ambassador Kenssy Dwi Ekaningsih was interviewed by Daniel Libertin
Photo credits: Embassy of the indonesia to the Czech Republic
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