3 new partnerships between New Zealand and Indonesia

The two countries are partnering to improve Indonesia's e-commerce, aviation and energy industries

Natashya Gutierrez

3:27:2am July 18, 2016

12:0:0am November 30, 0001

IMPROVING TIES. New Zealand and Indonesia signs new partnerships. Photo by Rapppler

IMPROVING TIES. New Zealand and Indonesia signs new partnerships. Photo by Rapppler

JAKARTA, Indonesia – New Zealand and Indonesia signed further partnerships between several companies on Monday, July 18, in a bid to increase trade and business between the two countries.

"Indonesia is a key market for New Zealand's exports. Real opportunities exist for New Zealand businesses to work more intensively with Indonesian counterparts in sectors such as renewable energy, education, aviation, technology and food and beverage," New Zealand Prime Minister John Key said, emphasizing global growth "still sits in Asia."

He said Indonesia is especially attractive due to its scale – Indonesia has 250 million people, the 4th largest population in the world – and the youthfulness of its population.

Key is in the country with New Zealand Trade Minister Todd McClay to meet President Joko Widodo and Indonesian trade minister Tom Lembong to discuss further partnership opportunities.

"This dialogue we have is very special... Indonesian and New Zealand economies are so complimentary, it's remarkable. It's perhaps for that reason that the relationship is friction-free and very harmonious," said Lembong.

Here are 3 of the partnerships signed by the two countries today:

1. Partnership to light up Indonesian streets

Energy is one area wherein both countries will work together. New Zealand company ETEL, which specializes in electricity distribution, announced a signifcant investment in Indonesian company PT Lucky Light Globalindo. Both companies hope the partnership will increase the quality of electricity both in Indonesia and Southeast Asia, and increase revenues to $15M over the next 3 years.

The investment means an increase of jobs for local workers as ETEL plans to double the number of Jakarta staff by the end of 2016, and quadruple it by the end of 2017. The two companies plan to expand manufacture of high-qaulity integrated products and 'smart grid' transformers and will work together to supply PLN Persero with the first set of transformers. 

PLN, an Indonesian government-owned corporation, has a monopoly on electricity distribution in Indonesia.

2. Partnership to improve e-commerce

A partnership between Indonesia's MatahariMall.com and New Zealand company Fishpond, which is the world's largest online marketplace product supplier, aims to allow customers to enjoy larger product selection online. The partnership also aims to further grow the e-commerce landscape in Indonesia.

Fishpond's WorldFront platform – which sells and ships more than 20 million products from suppliers around the world – and Matahari Malls' customer base, aim to work together to offer 1,000,000 new products for sale by the end of 2017.

3. Partnership to train pilots, improve aviation industry

Indonesia's aviation industry needs much improvement, and two new aviation-related partnerships with New Zealand aims to help in just that.

Indonesia's Fly Best Flight Academy and New Zealand's Ardmore Flying School are working together to close Indonesia's pilot gap and improve connectivity across Indonesia and ASEAN, by training Indonesian airplane pilots. The training hopes to increase flying skills and standards of safety, as well as chances for Indonesian pilots to get hired.

Additionally, Ardmore looks to train more than 100 new helicopter pilots by partnering with Indonesian helicopter company PT Whitesky Aviation (HeliCity, also to ensure high safety standards) for VIP passenger transport, private charters and Medivac services. The new partnership will also offer employment opportunites for Indonesia's future pilots.

New Zealand is known for its aviation products, having more than 800 helicopters, the highest rate per capita in the world, and 4,500 aircraft, or one aircraft for every 1,000 people. – Rappler.com