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Azerbaijan discusses efforts to increase investment with Indonesia

Antara News - 07 December 2022

Azerbaijan discusses efforts to increase investment with Indonesia

Azerbaijan’s Deputy Minister for Foreign Affairs Elnur Israfil oglu Mammadov discussed efforts to increase business and bilateral investment with the Indonesian Ministry of Foreign Affairs on Tuesday.

"So indeed, we have discussed the issue of both people-to-people and those as well as B2B, business-to-business, contacts, and earlier today, the Ministry of Foreign Affairs," the deputy minister said at the “Celebration of 30 Years of Azerbaijan-Indonesia Bilateral Relations” event here on Tuesday.

According to Mammadov, during the discussion, the two governments agreed to take all necessary steps to arrange business meetings for businesspersons from the two countries.

However, he emphasized that there are still several challenges that will need to be faced in efforts to increase business and investment cooperation between Indonesia and Azerbaijan.

"When we talk about economics, then you’re talking in different categories such as efficiency, such as visibility for projects, such as return on investment, and things like that," he said.

Therefore, the governments of Indonesia and Azerbaijan first need to raise awareness among business people and investors about the conditions they need to fulfill to make foreign investments.

He also emphasized the need for negotiations on the bilateral investment treaty.

The bilateral investment treaty is important because most investors generally do not want to take risks if there are problems in the future, he explained.

Mammadov said that currently, there are 90 Indonesian companies registered in Azerbaijan. Some of these companies have applied for projects which will be executed in regulated territories in Karabakh.

Meanwhile, regarding trade value, Mammadov said that the trade between the two countries had reached around US$500 million this year.

"It’s about half a billion. That’s a number for this year," he remarked.

In the first 10 months of this year, most of the trade transactions between the two countries involved the sale of crude oil from Azerbaijan to Indonesia.

"You (Indonesia) are one of the big purchasers of our crude oil through the state oil company," he added.

Azerbaijan imports palm oil, machinery, and equipment from Indonesia.

Mammadov said that there are certain challenges that will still need to be faced in trade relations between Indonesia and Azerbaijan, which include the geographical location of the two countries and the very limited information about the market.

Hence, the two governments, he said, will put every effort in place in order to support dialogue between business communities.

 source: Antara News