A number of Polish companies, ranging from those in the energy sector to food and beverages, are looking to tap into the Indonesian market amid the government’s ambitious power-plant development project and the huge overall market potential in the country.
Engineering, procurement and construction company Rafako and yogurt maker Bakoma are among the Polish firms seeking to build a presence in Southeast Asia’s largest economy, where the number of middle class consumers is growing.
Rafako’s advisor for foreign markets, GrzegorzKiczor, said on Wednesday that his firm aimed to break into the country’s energy sector on the back of the government’s plan to build power plants to generate 35,000-megawatts (MW) by 2019.
“We heard about the very ambitious projects by the Indonesian government and we would like to participate in the projects,” he told reporters after a closed-door meeting with Industry Minister Saleh Husin, which also included eight other Polish companies.
Kiczor declined to elaborate on any planned investment in the country, but said his firm was currently analyzing all obtained data to find local partners. Rafako, which has been operating in Poland for 65 years, would offer technology to modernize power plants, improve efficiency and reduce environmental footprints, he went on.
Bakoma, meanwhile, aims to grab a slice of the country’s market for dairy products, particularly yogurt.
“We’d like to get into this market and we’d like to extend our sales here. We’re also considering producing here in the future,” said Bakoma CEO Piotr Komorowski.
According to Komorowski, Indonesia has a very promising market potential for yogurt as consumption, although small, continued to grow.
Indonesia’s annual household consumption of dairy products rose to 313 ounces per capita last year from only 209 ounces in 2013, data from the Agriculture Ministry has revealed.
Komorowski said that his firm already held talks with some potential local partners.
Besides Rafako and Bakamo, as many as seven other Polish companies also met with Saleh to discuss potential investment opportunities.
The first secretary for investment and trade promotion at the Polish Embassy in Indonesia, Tomasz Pietka, said that Polish investment in Indonesia would probably grow as relations between the two countries got stronger.
Previously, Saleh signed a memorandum of understanding (MoU) with the Polish economy minister, under which Poland would function as a gateway for Indonesian products to the Central European market.
Poland’s investment in Indonesia, according to Pietka, made up less than 5 percent of overall investment by Polish companies.
According to the Investment Coordinating Board (BKPM), foreign direct investment (FDI) from Poland stood at US$11.48 million in the first half of this year, in 27th position among foreign direct investors in the country.