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Asia Pacific glance in Germany and China Other Services

06 Nov 2018| Posted by Morris | In Other Services

As a region with a growth rate above the world average and is supported by the stability and security, Asia Pacific is like honey. Alluring sweetness, making the world's economic powers came closer.

In the midst of challenges and uncertainties in the global economy, Germany is increasingly a serious deepening of relations with the Asia-Pacific region. The strategy used is to offer economic cooperation through technology, digital, and infrastructure.

In the Asia Pacific Conference of German Business (APK) 2018 organized by the German Chamber of Commerce (AHK) in Jakarta during 1-3 November 2018, some of the topics discussed include application of industrial 4.0 in the manufacturing sector, cyber security, infrastructure finance, and intelligence made.

Chairman of the Asia-Pacific Committee of German Business (APA) Hubert Lienhard, Saturday (3/11/2018), in an exclusive interview, said Germany and the EU want to improve connectivity with the Asia-Pacific region. "We offer a framework of cooperation that is open to all parties could participate," he said.

A day earlier, the Minister of Economic Affairs and Energy of Germany Peter Altmaier stressed, economic cooperation in different regions need to build through the trading system that is open, free, and fair in order to encourage the growth of the global economy. The system also must be based on the rules.

"This is because, both countries large and small, we are part of the world that must respect the needs of other countries," said Altmaier.

great potential

Germany and the European Union see great potential in the Asia-Pacific economy. Based on the data that is processed Germany Trade & Invest (GTAI), an agency of the German economy, Asia-Pacific has 34 percent of gross domestic product (GDP) globally. Contribution to global economic growth of this area reaches 62 percent.

Meanwhile, the value of exports from Germany to the Asia-Pacific region reached more than 188 billion US dollars. Countries contribute significantly to the economy of the Asia-Pacific are China, India, Japan, South Korea, and ASEAN.

Lienhard believe, one of the aspects of cooperation is to be encouraged in the field of infrastructure. "Connectivity Eurasia can complete the infrastructure projects in Asia," he said.

Eurasia connectivity strategy is to link Eastern Europe to Central Asia. This effort was initiated by the EU and supported by the European Investment Bank.

Lienhard, citing the Asian Development Bank (ADB) said that developing countries in Asia need 1,500 billion US dollars to build infrastructure. Eurasia connectivity would otherwise be done through an open and transparent auction tender so that all parties can participate.

The tender process is described differently by the initiative implemented in China and Belt Road, known as Belt and Road Initiative (BRI). The initiative will establish a network of economic development based infrastructure connecting China with Europe, Central Asia, Middle East, and Africa.

As is known, the President of China Xi Jinping proposes Belt Initiative and the Road in 2013 with an investment of more than 1 trillion dollars. The funds will be used to build ports, railways, airports, and other infrastructure.

BRI seen as an ambitious project in China. Some even accused the BRI is an effort to make China a conspiracy. Xi Jinping, on various occasions, has repeatedly denied the allegations.

Lienhard said China took Germany and Japan as a partner BRI, but Germany refused because of the vagueness of the project. Lienhard rate tender projects tend to be closed. While Japan choose carefully.

Professor Takashi Terada of the University Ooshisha said Japan's decision to surrender was involved in projects BRI to entrepreneurs. "According to me, Japanese companies need to approach carefully," Terada said.

As Germany, Terada assess China is still transparent.

Senior officials of the Ministry of Foreign Affairs of Germany, Walter J. Lindner, recognizes, Germany has an interest in the Asia Pacific region politically and economically. Open trade will keep the country's economy is oriented towards exports.

"We are the first champions of the world as an exporter. Now, our position

Asia Pacific Conference of German Business 2018, Saturday (3/11/2018), in Jakarta. The biennial conference organized German Chamber of Commerce (AHK) is held closer to Germany and the European Union with the emerging countries. second or third, "he said.

Germany does not oppose Belt Initiative and the Road to China. However, the bidding process is not transparent, making Germany concerned with potential debt trap, control, and dependence on China.

ASEAN

Head of Research and Development Policy of the Ministry of Foreign Affairs Siswo Pramono said, ASEAN countries, especially Indonesia, welcomed the offer of economic cooperation of each country.

However, any bid infrastructure projects should refer to the Master Plan on ASEAN Connectivity (MPAC). "ASEAN has developed a master plan related to regional connectivity," said Siswo.

The plan has been carefully considering the economic potential that would be obtained if the infrastructure is built in the country.

Executive Director of AHK Indonesia Jan H Ronnfeld said Indonesia must carefully choose the type of investment offered by foreign parties. A good investment would be offered transfer knowledge and technology to the local power company.

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