Doha • Qatar's booming economy has benefited Indonesia in a big way. The country's exports to Qatar registered a quantum jump over the last two years, according to an annual economic data released by the Indonesian embassy.
Indonesia's exports to Qatar touched $1.46bn last year. This is against $1.01 bn during the previous year; and $ 61.69m during 2005. Indonesia's non-oil products exported to Qatar include food and beverages, construction materials, electricity equipments, furniture, tyres, stationary, textiles and garment.
Bilateral cooperation between Indonesia and Qatar recently received a boost by the mutual visits of high-level political and business leaders. The signing of an agreement between Indonesia and Qatar concerning the regulation of Indonesian workers employment in Qatar is strategic and important measure to enhance the cooperation in the labour sector. It has facilitated an influx of Indonesian workers to Qatar, the document said.
On Qatar's investment in Indonesia, the report said, Indonesia and the Qatar Investment Authority had signed a Memorandum of Understanding (MoU) regarding the establishment of a Joint Investment Company (JIC). The Qatar Investment Company contribute to the 85 per cent of the $1bn worth capital.
The JIC will focus on the development energy sectors such as oil and gas, power plant and infrastructures in Indonesia. At the moment, both sides have taken preliminary steps and discussed details in order to implement the MoU..
The Indonesian lawmakers have just passed two new bills in June concerning the Islamic Sharia-compliant Banking and Sharia-compliant Debts (Sukuk) on either the international or domestic markets. This is aimed at attracting funds from Middle East investors, including Qatar to develop costly infrastructure projects in Indonesia.
Last year, Qatar Islamic Bank's (QIB) top officials visited Indonesia and announced their plants to establish a new Shariah Bank in Indonesia. The officials held several rounds of discussions with the Indonesian government regarding this.
The Midline Engineering Contracting and Trading, a Qatari Company, has made investment heavy investments in Indonesia's coal mining sector. Regarding Indonesian investment in Qatar, the Civil contracting major in Indonesia PT Adhi Karya (Persero) has won the $500m contract for the construction of three five-star hotels in Qatar, with the support of the local Al Fiasal Holding Company. Indonesia established diplomatic relations with Qatar in the mid-Nineties and opened its embassy in 1999.
© The Peninsula 2008
