Introduction

1. The Fourth Meeting of D-8 Working Group on Industrial Cooperation (WGIC) was held in Bali, Indonesia, on 10-12 November 2008. The Meeting was attended by delegations from seven member countries, namely, the Arab Republic of Egypt, the Republic of Indonesia, the Islamic Republic of Iran, Malaysia, the Federal Republic of Nigeria, the Islamic Republic of Pakistan, and the Republic of Turkey. The delegation of the People’s Republic of Bangladesh was not present. Also in attendance was the Secretary-General of D-8. The list of delegations is attached as Annex I.

Agenda Item 1: Opening Session

2. Mr. Agus Tjahajana, the Secretary General of the Ministry of Industry of the Republic of Indonesia, delivered his warmest welcome to all delegates. He underlined that this Meeting was remarkable, since this is the first time for the WGIC Meeting to include the participation of private sectors. He also informed the Meeting that a small exhibition is being held to display the capabilities of Indonesian industrial sectors. He expressed his hoped for the 4th WGIC Meeting to produce a Strategic Plan to explore industrial cooperation and business collaboration amongst D-8 member countries. The text of his welcoming remarks is attached as Annex II.
3. Mr. Dipo Alam, the D-8 Secretary General, in his remarks, briefed the Meeting on the global scale challenges faced by D-8 countries, namely, the food, energy and financial crisis. To cope with these challenges, the D-8 needs to implement its Roadmap. It is, therefore, essential that both the government and private sector of D-8 to align their efforts to materialize business collaborations on prospective areas based on common needs and interests. The text of his remarks is attached as Annex III.

Agenda Item 2: Business Arrangement

4. The Chairman commenced the meeting by inviting all delegates to introduce themselves. The Chairman further informed the meeting that there will be Plenary Sessions for Government Officials and Private Sector to discuss certain core issues that of interest to both sectors. Those Parallel sessions will submit their reports or conclusions to the General Plenary Session.
5. The Chairman invited all delegates to attend Industrial Exhibition participated by several Indonesian Industrial Association and companies that allowed delegates to get information and business opportunities. Some member countries impressed and expressed their interest in some products displayed, such as autoparts, electronic and electrical appliances, petrochemicals, agro based products, automotive and energy related products. This lead to potential industrial cooperation among D-8 member countries.

Agenda Item 3: Adoption of the Agenda

6. The Chairman briefed the meeting on the tentative agenda that has been circulated to all delegates before the meeting. He informed that three member countries, Turkey, Iran and Pakistan conveyed their responses on the tentative agenda. The meeting adopted the revised agenda as attached in Annex IV.

Agenda Item 4: Consideration and Adoption of the Minutes of the 3rd WGIC Meeting

7. The Representative of Malaysia briefed the meeting on the Minutes of the 3rd WGIC Meeting held on 22 May 2007 in Kuala Lumpur, Malaysia. The Secretary General commented that it is necessary for member countries to establish a secretariat of the WGIC, and together with D-8 Secretariat, will coordinate and evaluate the implementation of decisions made by the WGIC meetings. The Meeting adopted the Minutes of the 3rd WGIC meeting as attached in Annex V.

Agenda Item 5: Learn from ASEAN Cooperation Schemes in Industrial Development

8. Ms. Kanya Satyani, representative of the ASEAN Secretariat briefed the Meeting on the experience in ASEAN in developing its Industrial Cooperation. She highlighted that since 1976, upon the mandate given by the ASEAN Leaders in its first Summit in 1976, ASEAN has adopted 5 schemes of Industrial Cooperation. The five schemes are (i) ASEAN Industrial Projects (1976), (ii) ASEAN Industrial Complementation (1981); (iii) ASEAN Brand-to-Brand Complementation –BBC (1988); (iv) ASEAN Industrial Joint Venture;-AIJV (1983); and (v) ASEAN Industrial Cooperation –AICO (1996). She added that AICO scheme is the existing Industrial cooperation in ASEAN which superseded the previous schemes. The AICO is designed to promote sharing of industrial activities among ASEAN based companies and it offers a head start of enjoying the 0% tariff rate under AFTA, which, under the non-AICO arrangement, would be enjoyed by 2010 in the ASEAN 6 (Brunei, Indonesia, Malaysia, the Philippines, Singapore ad Thailand, and 2015 in Cambodia, Lao PDR, Myanmar and Viet Nam.
9. Ms. Kanya further highlighted that ASEAN recognizes the important role of the private sector as the engine of the economic growth. In line with this, ASEAN has also enhanced the consultations with private sector in designing its industrial cooperation. This is shown by the evolution of its industrial cooperation schemes, where it started with the AIP which was government lead projects to the AICO scheme, where inputs from private sector was taken into account. The presentation slides of the ASEAN Secretariat is attached as ANNEX –
10. In responding to the enquiry on how ASEAN companies have benefited from AICO scheme, Ms. Kanya explained that the AICO scheme has allowed the companies to develop specialization and enhance their efficiency through the economies of scale. On the enquiry of how ASEAN is currently promoting its industries in general, she explained that ASEAN is continuously reviewing the Rules of Origin under AFTA that would facilitate the enhancement of production network and facilitate trade within ASEAN as well as to promote investment into ASEAN industries. In addition to this, ASEAN is also putting more emphasis on trade facilitation measures. For this purpose, an ASEAN trade facilitation work programme to synchronise and synergize the efforts of trade facilitation related initiatives in various sectors and maximize its impacts. ASEAN Trade facilitation framework is also currently being developed. On the enquiry of the impact of the various ASEAN FTAs with its Dialogue Partners to ASEAN’s trade and investment, she indicated that positive trends have been show under ASEAN-China and ASEAN-Korea. However, it would be premature to judge that such positive trend are indeed the results of the newly established FTAs.

Agenda Item 6 : The Expectation on the Implementation of Industrial Cooperation among the D-8 Countries (Automotive, Fertilizer, Steel Pipe, Petrochemicals)

11. The Indonesian private sector made four presentations on Automotive, Fertilizer, Steel Pipe and Petrochemicals sectors. Each presentation attempted to unveil the potential of D-8 industrial sectors and explore options for future cooperation among member countries.
Automotive
12. The representatives of the Association of Indonesia Automotive Industry (GAIKINDO) and Association of Indonesia Motorcycle Industry (AISI) made presentations on their respective automotive industries. The presentations highlighted the latest developments of automotive industrial sectors in the D-8 countries, particularly in Indonesia. The Meeting noted several proposals on possible cooperation amongst D-8 countries in four wheel automotive industry, through the development of automotive industrial cooperation schemes, export promotions, and trade facilitation that could create conducive environment for business. The presentations of GAIKINDO and AISI are attached as Annex VII.
13. During the discussion, the Iranian delegation requested GAIKINDO to share its experience in the implementation of National Car Program. The representative of GAIKINDO briefed the Meeting on the history and the progress of the National Car Program. He further explained that there is no restriction to export Indonesia cars that produced under joint venture with foreign brand.
Fertilizer
14. The Chairman of the Association of Indonesian Fertilizer Enterprise (APPI), in his presentation, underlined that the demand for world fertilizer is increasing rapidly due to the energy and food crisis. He also explained the capabilities of Indonesian fertilizer industry in terms of Engineering, Procurement, Construction (EPC); Pre Commissioning and Start-Up (PCS); Maintenance and Overhaul for fertilizer plant; and project management and plant relocation. He added that taking into account the potencies of D-8 member countries, it is necessary for D-8 to establish fertilizer industrial cooperation. The text of the presentation is attached as Annex X.
15. D-8 Secretariat drew the attention of the meeting to the outcome of the 6th D-8 Summit in Kuala Lumpur, where the Head of States/Governments of D-8 had committed to implement at least one collaborative project among D-8 member countries in order to minimize the impact of food crisis.
16. Delegates of Indonesia, Iran, Nigeria and Turkey shared the same opinion that it is crucial for D-8 to establish cooperation in fertilizer industry amidst the global challenges triggered by the food and energy crisis. The meeting took note of the views and requested the D-8 Secretariat to take necessary actions.
Steel Pipe
17. The representative of the Indonesian Iron and Steel Industry Association (IISIA) made presentation on the pipe industry outlook globally and regionally. The presentation covered the Indonesian steel pipe industry, pipe demand and supply, applied experience and suggested areas for cooperation. He emphasized the capability of Indonesian steel pipe industry to produce steel pipes for oil and gas applications - off shore, on shore and sour service condition. The text of the presentation appeared as Annex XI.
18. The IISIA was of the view that cooperation in this sector has promising prospect and therefore Indonesia appealed for D-8 countries to start with a concrete project in this field. In this regard, the Secretary General of D-8 suggested that member countries might consider initiating a Memorandum of Understanding and or Minutes of Meeting as the basis for the cooperation among member countries.

Petrochemicals

19. At the presentation on Petrochemicals, the representative of Indonesian Aromatic Olefin and Plastic Industries Association (INAPLAS) pointed out the increasing demand of Petrochemicals and market, particularly in Middle East, Africa and Asia Pacific Region. With regard to the Petrochemical market, Indonesia remains having potential to grow further due to its small amount of consumption per capita. Hence, Indonesia offered cooperation with D-8 member countries in areas of joint investment of olefin and aromatic center, feedstock and exchange of information about the latest development of technology and market of Petrochemicals. The full text of this presentation is attached as Annex XII.

Agenda Item 7: Presentation by Turkish OSTIM (Industrial Organized Region) “A Fine Example of Cooperation among NGO’s and Government”

20. The Representative of Turkish OSTIM made presentation to share its experience in managing Industrial Organized Region covering thousands of turkey’s small and medium enterprises in more than 100 industrial sectors. The text of the OSTIM presentation is attached as Annex VIII.
21. The Indonesian delegate raised a question to seek the possibility of OSTIM assist Indonesia in building the so called Industrial Organized Region. In response, Turkish delegate expressed his readiness to assist and cooperate with Indonesia.

Agenda Item 8 : Presentation by Turkish Patent Institute “Technical Cooperation among Industrial Property Offices in the OIC Member States”

22. The representative of Turkish Patent Institute made presentation on the experience of cooperation among Industrial Property Offices in the OIC member states. The project aimed at promoting technical cooperation in the field of intellectual property, including Industrial Property legislation to international standards. Through this project, Turkish Patent Institute is recommended by OIC Member States to integrate all IPR administration in single and autonomous agencies, establish specialized IP courts, establish coordination bodies to ensure effective enforcement and training and capacity building programmes. The text of his presentation is attached as Annex IX.

Agenda Item 9 : The Study on Standardization of Certification of Food Sector

23. The Representative of Malaysia, in line with the decision of the 3rd WGIC, presented an overview on the progress of the study on standardization of certification of food sector. He underlined the importance of Food Certification that will allow access to growing export markets in Asia, Middle East and Africa. In this regard, Malaysia offered its ability to issue Halal Food Certification that has been encompasses international standards of Good Manufacturing Practice and Good Hygiene Practice and promoted as the benchmark for international standard of Halal food products. He highlighted the need to establish one stop-agency to monitor provide international benchmark for halal food product certification. The Presentation of Malaysia is attached as Annex X.

Agenda Item 10 : Country Presentations on Industrial Cooperation as Agreed in the 3rd D-8 WGIC Meeting Management of Airport and Port Services Cooperation (Malaysia)

24. The representatives of Malaysia made their country presentations which contained a briefed overview on the implementation of Malaysian strategic policy to manage its Airports and Ports services. The delegation also highlighted the overseas business ventures that have been carried out by Malaysia with various countries. Possible areas of cooperation that could be undertaken among D-8 Member Countries were brought to the attention i.e. through partnership in specific development projects; staffs exchange programmes (attachment of officers at Malaysian Airports and Ports); and consultation in construction, management and operations of Airport and Port. The text of their presentations is attached as Annex XI.
Automotive Industry (Turkey)
25. The representative of Turkish Ministry of Industry and Trade made presentation on the outlook of Motor Vehicle Industry worldwide and in particular, Turkey. She pointed out Turkey’s efforts to keep up with the global and the European Union’s economic trends. She highlighted that in 2012, Turkey is hoping to emerge as one of the world’s largest Motor Vehicle Producers. In cooperation with the D-8 member countries, Turkey proposed to work together in the areas of technological know-how in the selected product groups and the production of motor vehicle spare parts. The text of the presentation is attached as annex XII.
26. In responding to Indonesian delegates’ question on automotive industry, Turkey explained that the harmonization processes to align with European Unions’ standard has been completed. Discussion also took place regarding the Role of Research and Development support to increase Turkey’s capability in motor vehicle industry. It was explained that R&D is playing strategic role to provide concrete business plan /project and relevant data to support, for example - manufacturer’s application for patent.
27. The representative of GAIKINDO appealed to the Meeting for D-8 to have cooperation in the field of automotive industry, especially in exchange of information on how to develop technological ability through Research and Development in automotive industry by establishing some sort of Memorandum of Understanding. Secretary General of D-8 commented that given the current situation of the European Unions’ financial market, it is timely for Turkey to look to the D-8 market and establish cooperation. While for other D-8 member countries, it is time for them to deepened cooperation with Turkey as the hub that connects Asia and Europe.
28. The Turkish Delegate circulated presentation on Oil and Gas Strategies related to industries to all participants of the 4th WGIC Meeting and encouraged member countries to cooperate with Turkish industry.
Agricultural Machinery (Indonesia)
29. Two representatives of Indonesian Agriculture Machinery Industrial Sector made presentation on the capability of Indonesia to support its agricultural sector with locally manufactured agricultural machinery. The text of his presentation is attached as Annex XIII.
Textiles, Iron and Steel (Egypt)
30. The representative of Egypt made presentation on overview of its economy that includes Egypt’s economic indicators, free trade agreements and actions taken to improve its industrial sector, particularly in Textile; and Iron and Steel industries. The presentation also proposed the steps to be taken among D-8 member countries to develop cooperation, which are to identify joint venture project for cooperation, exchange of related information through focal points under the supervision and assistance of D-8 Secretariat, consultations through focal points and official channels to start feasibility study, starting feasibility study, taking in consideration of establishing real investment and benefiting from the resources available for each member countries. To this end, he stressed the Assistance factors for realizing projects comprising joint exhibition and trade fairs and studying the logistics between member countries which affects the realization of any projects. Egypt announced that the 12th Islamic Trade Fair in Cairo on 16-18 October 2009 and encourage the participation of D-8 member countries. The text of the presentation is attached as Annex XIV.
Petrochemical and Automotive (Iran)
31. The representative of National Petrochemical Company (NPC) of Iran made presentation on the latest development of Petrochemical Industry. The presentation covers strategic development programs aimed to increase production, sales and trades which includes the construction of petrochemical special economic zone projects and ethylene pipeline projects. He suggested the D-8 to establish the “D-8 Group Petrochemical Expert Committee” and or Task Force to study the ground for future D-8 cooperation. The text of this presentation is attached as Annex XV.
32. At the presentation of Automotive Industry of Iran, the representative of Iran briefed the meeting on the automotive industry in D-8 countries, particularly in Iran. He pointed out that looking through the figures of car ownership in D-8 countries, identified that there lies a big potential market in Bangladesh, Nigeria, Pakistan, Indonesia. The presentation also underlined the importance of Natural Gas Vehicles as alternative of automotive industry to cope with the current world energy crisis. Iran proposed to form different multi-disciplined teams from participating members to study D8’s auto industries and markets the following areas: Market Opportunities, Product Design & Development, Supply Chain, CNG Technology & Infrastructure, Laws & Regulations, and New Business Opportunities. To this end, the convening of the first D-8 Auto Industry Task Force Meeting was proposed by Iran to be held in Tehran on December 2008. The text of the presentation is attached as Annex XVI.
33. The representative of Iranian Pardis Technological Park made presentation on its best practices in developing an integrated technological zone. He further suggested the D-8 to establish D-8 Techmart as a system for creating efficient ties between technology suppliers and technology demanders. He view that the D-8 Techmart could utilize the capacity of member countries for the improvement of technology, passing over the parallel works in research and commercial activities, establishing a network between D8 countries for more cooperation in the area of modern technologies, improving commerce between D8 countries, especially in the area of modern technology based products. The text of this presentation is attached as Annex XVII.
34. The Iranian Delegate circulated their presentations on Cement, Steel and Power plant Industries to all participants of the 4th WGIC meetings and encouraged member countries to cooperate with Iranian industries.
Gas & Electricity (Nigeria)
35. The representative of Nigerian National petroleum Cooperation (NNPC) made presentation on the overview of the current Nigerian gas sector. He briefed the meeting that Nigeria is facing an unprecedented gas demand growth. To properly manage this situation, Nigeria had executed the gas master-plan. He further proposed the D-8 to initiate cooperation in building export-based refineries. The text of his presentation is attached as Annex XVIII.
36. The next speaker, representative of the Energy Commission of Nigeria made presentation on the policy of Nigeria to deal with its energy problems. He pointed out that one way to overcome the electricity crisis is to reduce demand by using energy efficient appliances such as the energy saving bulbs or compact fluorescent lamps (CFL). He invited the D-8 member countries to collaborate in the form of manufacturing plants for CFL, joint investment for the energy sector and joint investment for manufacturing sector. The text of this presentation is attached as Annex XIX.

Agenda Item 11 : Parallel Session Parallel Session for Government Officials

37. The Plenary Session for Government Officials was chaired by Mr. Agus Tjahajana. The session discussed main issues namely, the Model for Industrial Cooperation among D-8 Countries, Focal Points for the WGIC, the Establishment of Permanent Secretariat of the WGIC and the Utilization of D-8 Website for exchange of information for industrial cooperation.
38. After having an intensive discussion and exchange of views, the meeting agreed to the following decisions:
a. Sectors and Country coordinators for future cooperation of WGIC:
i. Automotive (Coordinator : Iran, Egypt, Indonesia)
ii. Energy, Power Sector, and Conservation (Coordinator : Turkey, Nigeria)
iii. Food Production through Mechanization (Coordinator: Malaysia)
iv. Cooperation/Transfer of Technology (Coordinator : Turkey, Iran)
v. Petrochemicals and fertilizer (Coordinator : Indonesia and Iran)
vi. Cement (Coordinator : Iran)
vii. Steel (Coordinator : Iran)
viii. Textile (Coordinator : Egypt, Indonesia)
ix. Standardization and Intellectual Property Rights (Coordinator : Turkey, Iran)
x. SMEs (Coordinator: Turkey, Indonesia, Iran and Nigeria)
xi. Electronics and IT (Coordinator : Malaysia)
b. The Coordinator country of each sector will establish a Term of Reference of the Task Force including the feasibility study of future cooperation and the time frame on each sector. The Term of References of the Task Forces should be submitted to the D-8 Secretariat.
c. D-8 Secretariat will send to all D-8 Commissioners’ and the delegates of the 4th WGIC, the Terms of Reference of the Task Forces.
d. Some countries have informed their focal point as listed below while the other will submit their focal point to the D-8 Secretariat within 2 weeks after the completion of this meeting.
No. Countries Focal Points
1 Egypt : Ministry of Industry and Trade
2 Iran : International Organization Department,
Ministry of Industries and Mines
3 Malaysia : Senior Director, Sectoral Policy and Industry Services, Minister International Trade and Industry
Fax. No.: (6)03 62018124
4 Nigeria : a. Director General/CEO, Energy Commission of Nigeria, Plot 701C, Central Area Behind National Mosque, P.M.B. 358 Garki – Abuga, Nigeria
Email: assambo@yahoo.com, ecn@hyperia.com
b. Director General Small and Medium Enterprise Development, Agency of Nigeria, 35 Port Gimabiya Street Area 11, Garki 2, P.M.B. 5165 Wuse, Abuja
Email: ikennaonugha@yahoo.co.uk
e. Indonesia has indicated its readiness to be the Permanent Secretariat of WGIC for two years and Turkey will act as Vice Secretary. This will be effective subject to the endorsement of the 26th Session of the D-8 Commissioners’ Meeting.
Plenary Session for Private Sector
39. The Plenary Session for Private Sector was chaired by Mr. Budi Darmadi, Director General of Transportation and Telematics Industries, Ministry of Industry the Republic of Indonesia . The session discussed automotive, fertilizer, and energy saving industries. The full report of this plenary session for private sector is attached as Annex XX.
40. The private sector of Indonesia, Turkey and Iran has signed a Minutes of Meeting to facilitate cooperation through a long-term program on Automotive Industry. A Joint Working Group will be established to develop the long-term cooperation program.

Agenda Item 12 : Reports/Conclusions of the Government Officials and Private Sector Meetings

41. Both Chairman of the Plenary Session for Government Officials and Private Sector presented their reports to the General Plenary Session as attached in Annex XXI.

Agenda Item 13 : Consideration and Adoption of the Report of the 4th D-8 WGIC Meeting

42. The Meeting considered and adopted the Report of the 4th WGIC meeting as attached in Annex XXII.

Agenda Item 14 : Date and Venue of the 5th WGIC Meeting

43. The Fifth D-8 Working Group on Industrial Cooperation will be held in Tehran, in 2009, back-to-back with the First Ministerial Meeting on Industrial Cooperation.

Agenda Item 15 : Any Other Business

44. The Delegation of Iran informed the Meeting that the Islamic Republic of Iran will host the First D-8 Ministerial Meeting on Industry in Tehran in June 2009. The Meeting appreciated the initiative of Iran to provide the Terms of Reference, Agenda and the Plan of Actions of the 1st D-8 Ministerial Meeting on Industrial Cooperation during the 4th WGIC meeting. Formal Invitation of the said meeting will be sent to the member countries through diplomatic channel and the D-8 Secretariat.
45. The D-8 Secretary General reminded the Meeting on the completion of the Industrial Questionnaires prepared by Iran and expected all member countries to respond the questionnaire two months prior to the First D-8 Ministerial Meeting on Industrial Cooperation. So far only Turkey responded to the questionnaire.

Agenda Item 16 : Closing

46. Delegations expressed their gratitude to the Government of the Republic of Indonesia for the excellent arrangement made for the Meeting and for the warm hospitality offered to them during their stay in Bali.