Indonesia-Laos Economic Relation

Last Updated on 03 December 2015

Indonesia-Laos Economic Relation


   4On November 4th, 2014 Indonesia-Laos Investors Meeting was held by the Indonesia’s Embassy in Vientiane at Mercure Hotel, Vientiane.  The meeting, which purpose was to strengthen the economic relation of both countries by making an investment to Laos was attended by approximately 50 participants. Among them are the member of the Lao National Chamber of Commerce and Industry, the representatives of Savanakhet Province Governor office, and the local journalists. The Ambassador of the Republic of Indonesia in his speech stated that “sister cooperation by sector” is one of the ways to increase the economic relation. Garuda Maintenance Facility (GMF) is one of the examples. GMS is in the cooperation with Lao Central Airlines in term of the spare part maintenance and with Lao Airlines in order to give airplane maintenance service. This meeting was also one of their methods to prepare an ASEAN Economic Community (AEC) 2015.

   From the meeting can be concluded that the investment in Laos has both challenges and opportunities. The challenges are, there is no direct flight from Indonesia to Laos, lack of information related to the Laos investment, language barrier, and the low infrastructure compared to the other ASEAN countries. The opportunities are, Laos borders directly to five Asian countries which will decrease the export transportation fee to the countries nearby, there are a lot of open areas in Laos that can be turned into a farm field, Mr. Bouphan Souvannavong and Mr. Ong Ching Chai explained that Laos has 9 special and Specific Economic Zone which are opened for economic activities. Laos also open a very wide opportunity for hotel’s, restaurants’, education’s, hospital’s, hydropower’s investors and many more considering this country is still under development.

   Mr. Ikmal Lukman, The Promotion Director of the Indonesian Investment Coordinating Board and Mr. Juan Gondokusumo, the Indonesian Chamber of Commerce and Industry on their presentation stated that the important point of Laos investment is the investment potential data, for this is going to simplify Indonesian investors to make an investment. Food Security is the example of potential collaboration between Indonesia and Laos. Indonesia is on the 16th position out of 50 countries which are investing in Laos. The Indonesian Investment Coordinating Board also brought in entrepreneurs who have interest and potential to make a business in Laos. So by this meeting, they will be able to know Laos more and it is going to gain their interest in investing.

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