KazanSummit-2020: What to know about Indonesian business

10 June 2020

 

The economic wing of the Strategic Vision Group “Russia – Islamic World” is intensifying its activity online at the offline session of the annual international economic forum KazanSummit. In this regard, the Investment Development Agency of the Republic of Tatarstan has launched a series of online interviews with the OIC Ambassadors Extraordinary and Plenipotentiary to Russia and business representatives. The first meeting was held with the Ambassador Extraordinary and Plenipotentiary of the Republic of Indonesia to Russia Mohammad Wahid Supriyadi.

 

During the first online meeting, which took place on Monday, June 8, Mr. Mohammad Wahid Supriyadi together with Head of the Investment Development Agency Taliya Minullina discussed not only the economic development of the two countries against the background of Covid-19 coronavirus infection and the measures taken to support business in the current conditions, but also tried to give a forecast of the resumption of the tourism industry, employment of students and analyzed the interaction between Indonesia and Russia, including the Republic of Tatarstan.

 

According to the Ambassador Extraordinary and Plenipotentiary, there is active support for business in Indonesia - there are delays in loan payments and tax breaks. In general, according to the experts, there are a number of industries, which have intensified in contrast to the observed general decline of the general economy during the coronavirus. This is about medicine, production and transportation of medical equipment, digital technologies and IT section. Changes have also affected the cargo industry.

 

As far as the export of Russian goods is concerned, Indonesia is the second largest exporter of Russian wheat in the world, after China. In the Russian Federation also imports certain products from Indonesia, including fats and oils, as well as cars and related equipment. The basis of the country’s GDP is the development of tourism, export, transport and telecommunications systems. In general, Indonesia, despite the current difficult conditions for the world economy, has managed not to go into the red in terms of trade unlike China.

 

Besides, the interview was also attended by a direct representative of Indonesian business, who is involved in the active cooperation with Russian counterparts, in particular, with business representatives in the Republic of Tatarstan. During the conversation, Mr. Rainer told about peculiarities of the Indonesian mentality, which should certainly be taken into account when building business relations.

 

“In April, there had been planned a meeting with our Russian counterparts to present the economic potential and advantages of cooperation in the business sphere. However, due to the pandemic, we had to postpone the meeting until October. Of course, we could have held the presentation using online platforms. But there are certain peculiarities in Indonesia, which are reflected in the mentality. We put more emphasis on personal contact, on so-called offline meetings”.

 

“The main lesson that the virus has taught us is association”, the Ambassador Extraordinary and Plenipotentiary of Indonesia to Russia highlighted. “It seemed to us that some European countries had been initially more prepared for such unusual situations. But in fact, we faced the need to unite, to work closely for the benefit of the entire world community. We hope that in the nearest future this work will bear fruit and we will not only resume foreign tourism, including with Russia, but also be back on track”.

 

As for the tourist industry, as Mr. Mohammad Wahid Supriyadi noted, active work on resumption of active and uninterrupted work of the tourist destination is already underway. We would like to remind that Russia is planning to resume air communication with Asian countries at the beginning of August. Indonesia, in its turn, is planning to open borders on July 10. The Ambassador assured that those Russian citizens, who are now inside the country, will be the first to get an opportunity to return to their families. For now they are receiving the necessary help and support.

 

“It should be noted separately that Russia is one of the most interesting and attractive places for tourism. At the level of the Presidents of our countries there are a lot of agreements, a close and effective dialogue has been established long ago. In general, we are very interested in further rapprochement with the Russian Federation, both in business, cultural and diplomatic spheres. Unfortunately, the pandemic dictates its own conditions. Thus, the planned visit of the Russian side to Indonesia in April has been cancelled”.

 

In her turn, Taliya Minullina spoke in more detail about the investment attractiveness of Tatarstan’s well-developed infrastructure, stressing that each sector of the economy, and special preferences for those businessmen who invest in Tatarstan. Addressing the Ambassador, the Head of the Investment Development Agency highlighted that many students from Indonesia receive higher education in various fields in Tatarstan, which also indicates close cooperation and collaboration.

 

It is noteworthy that this year Russia and Indonesia are also celebrating the 70th anniversary of establishing diplomatic relations. This remarkable date is a good opportunity not only to take stock of the path we have travelled together, but also outline plans for the nearest future, including in the online space. A number of events in online format, including those related to the economy, are planned by both the Agency and the Group.

 

 

Ilmira Gafiyatullina