The English text is followed by a Hebrew translation

The Israel-Indonesia Chamber of Commerce

The Chamber was founded in Tel-Aviv in the summer of 2009 by the Israel-Asia Chamber of Commerce headed by former Minister of Trade and Industry Ran Cohen. Mr. Emanuel Shahaf, CEO of Technology Asia Consulting Ltd. was elected the inaugural chairman and served until 2013 in this position when he stepped back to continue to serve as Vice Chairman. The aims of the Chamber are:

1. To promote Israel-Indonesia business and commercial relations at all levels.
2. To support Israeli companies who want to develop their business in Indonesia with relevant information and advice.
3. To support Indonesian companies who are looking for products, technologies and know-how on the Israeli market.
4. To arrange events and networking opportunities.
5. To conduct trips and seminars
6. To monitor the legal and business environment and keep members informed of relevant developments.

 

Indonesia – Israel: Trade and Investment Opportunities

The combined direct trade between Indonesia and Israel in 2008 was valued at approximately 750 Million Dollars, overwhelmingly Indonesian exports, a large increase over 2007 although exact numbers are notoriously difficult to obtain. Several more tens of millions of Dollars are generated by indirect trade of Israeli companies through third countries so the grand total is probably above 800 M$. Direct Israeli exports remain ludicrously low at 16 M$ when looking at the size of the economies and the potential, in particular since a large part is generated by only a small number of hi-tech projects.

Opportunities for imports from Indonesia are in the wood, furniture and textile fields , automotive equipment and spare parts and, off course, raw materials (coal) and chemicals. Export opportunities are in the hi-tech sector, alternative energy, medical technology, agro-business/technology and fertilizers. Human resource development and educational technology are other areas where Indonesia has considerable market potential. Prospects in the security field have consistently been overrated: The Indonesian military has neither procurement budgets, nor a clear acquisition policy and serious deals, if at all, will come about only in exceptional cases after enormous efforts.

Investment opportunities with truly large potential do exist particularly in agro-business, energy and mining and joint efforts with local partners should not be considered too risky if handled expeditiously.

Bureaucratic and legal issues of bilateral trade, including visas for Israelis (except for temporary hitches), shipping and money-transfers have mostly been solved  and few if any obstacles are left.

Indonesia is not for the timid and doing business there requires patience, expertise and a lot of cultural sensitivity. The huge long-term commercial potential and the fascinating local culture and hospitality of the people are likely to make it well worth the effort.

The Israel-Indonesia Chamber of Commerce is here to help you.