Investments

Talks held on possible Indonesian investment in Osijek

15.09.2013 u 17:00

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Osijek could become a logistical centre for Indonesian and Asian goods entering the European Union market, which would open up opportunities for considerable investment and new jobs, a meeting of Economy Minister Ivan Vrdoljak and local authorities with a delegation of Indonesian investors said in this eastern city on Sunday.

Vrdoljak told the press after the meeting that the talks opened a possibility for establishing an economic and political partnership with Indonesia, because Croatia could offer the fastest and cheapest link for the transport of goods between the Mediterranean and the Black Sea through the Adriatic port of Rijeka and Osijek.

Vrdoljak said that Croatia could also offer a possibility of building palm oil refineries, one of Indonesia's main exports, assisting investors in communication with the European Commission and the European Parliament, and opening logistical channels to Asian markets for Croatian companies.

When asked about the time frame for possible investment in Osijek's airport, Vrdoljak said that a study for tender documents was expected to be completed by the end of the year and a public tender for the airport would be advertised in the first quarter of the next year. He added that it was too early to discuss the value of the entire investment project.

Global Putra International CEO Sumadi Kusuma said that an agreement had been signed with the Croatian company Orbico to establish a joint venture. He said that the aim of his company, which engages in the transport and distribution of goods, was to find a way how Croatia could become a new European gateway for Indonesian and Asian products, as well as a logistical centre for marketing Croatian products in Indonesia and Asia.

Kusuma said that Indonesia was the world's largest producer of palm oil, which is used in biodiesel production in the European Union, so his company was seeking strong logistical infrastructure in Croatia -- a river port, an airport and a sea port.

Osijek Mayor Ivan Vrkic said that the talks also focused on possible investment in Osijek's river port and airport and the Nemetin industrial zone. He said that Croatia could be a good strategic partner because its geographical position was such that it could shorten and cheapen the transport of goods from Asia to Europe.

"We have begun serious talks on signing a cooperation memorandum in which we would define initial steps," Vrkic said.