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17.10.2018
The Governor of the Indonesian province of West Java plans to treat Moscow’s residents to Indonesian coffee
On October 17, a meeting was held between the leadership of the Moscow Chamber of Commerce and Industry and a business delegation of representatives from the Indonesian province of West Java, headed by its Governor, Mr. Ridwan Kamil. The meeting was conducted on the historical premises of the Vysokopetrovsky monastery in light of a cooperation agreement with the MCCI. 

The Vice President of the Moscow Chamber of Commerce and Industry, Mr. Suren Vardanyan, noted that Indonesia is an interesting and dynamic market. In 2017, Indonesia ranked 36th in the world in terms of national competitiveness. The country belongs to the category of the most promising developing countries - the so-called “Group of Eleven”. The economic growth rates recorded in 2017 amounted to about 5.2%, which is a very high figure under the conditions of modern realities. Nevertheless, the stratification of society in terms of income in Indonesia remains significant. Mr. Vardanyan presented the economic and investment potential of Moscow: “Moscow’s revenue constitutes 25% of the budget of the Russian Federation; 40% of all wholesale and retail trade in Russia is concentrated here. Moscow accounts for 17% of the non-oil exports of the Russian Federation. In 2017, $ 34 billion in foreign investment was obtained. Tourist traffic rose by 26%, thanks to the World Cup. Today, the city offers guarantees against non-commercial risks. In addition, the Moscow Government is ready to sign offset (pending) contracts within the auspices of a state order, for example, in the field of drug production. ” Moscow is making great efforts to attract investment, notably for high-tech and environmentally friendly production. An innovative infrastructure has been created: 33 technology parks and a Special Economic Zone, the residents of which are afforded significant tax advantages. 

The Governor of the province described West Java: it borders on Jakarta and the Banten province in the west, on Central Java in the east. The province combines nine major cities. The population of the province is more than 50 million people, while the province accounts for 13% of the country's GDP. One of the key export products of the province is coffee. Javanese coffee is known worldwide and is exported to many countries. All production today is state owned. There are many small family businesses in Java, but they all comply with the required state production standards. The peculiarity of Javanese soil gives its coffee a pleasant taste, fruity aroma and the characteristic nuance of sourness. “We want to open a network of cafes or restaurants in Moscow, where only Indonesian coffee will be served,” said the Governor. 

The Head of the delegation focused on other possible areas of cooperation:  the agricultural sector, tourism. The island of Java enjoys unique natural conditions and landscapes, which makes it an attractive tourist destination. “The largest investors in the province are Japan and China, but we hope that Russian investors will also appreciate the benefits of our land. We are interested in investing in the development of the aviation industry, as well as the development of high-speed infrastructure,” said Mr. Kamil. Investors can submit an electronic application for starting a business; in the construction sector, for example, work can be started before obtaining all the necessary permits. Income tax is not levied on the first - time investments in developing an innovative new branch for the economy of the province. 

Mr. Vardanyan introduced the “Business Market” platform to the guests, which allows placing commercial offers of foreign partners on the market. He also recalled that the Moscow Chamber of Commerce and Industry signed a cooperation agreement with the Jakarta Chamber of Commerce and Industry, and that the joint work can be continued with the province of West Java as well. The meeting was attended by the Russian companies “Alka Tek (power engineering and shipbuilding), “Svyaz” (waste recycling), “AltaGroup” (water purification), the Business Council for Cooperation with Indonesia. 

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