Jakarta. Indonesia and Vietnam have agreed to strengthen their economic ties by increasing trade and investment in the coming three years, President Joko Widodo said during a bilateral meeting with Vietnam's Prime Minister Nguyen Tan Dung on Sunday.
Joko met the prime minister on the sidelines of the Association of Southeast Asian Nations summit in Kuala Lumpur this weekend. The two leaders agreed to set a goal of $10 billion in trade by 2018 — up from the current $6 billion — and to boost mutual investment.
According to the latest report from Indonesia's Investment Coordinating Board, or BKPM, Vietnam's investment realization in Indonesia in the January to September period has only reached $60,000. However, the amount was an improvement from almost no investment in the same period a year ago.
Franky Sibarani, the BKPM chief, said the agency has recorded 31 Indonesian companies that have invested in Vietnam so far — pharmaceutical companies, property, packaging, paint, food, chemical and freight forwarding.
"Most of Indonesia's well-known private companies have invested in Vietnam, including one of Asean's biggest cement producers, Semen Indonesia," he said.
"This is in line with the government's effort to make the best of the Asean Economic Community [which comes into effect next month] by pushing Indonesian companies' role regionally and globally while improving investment into the country as well, turning Indonesia into a production base," Franky said in a statement on Monday.