Australia, Indonesia pledge to boost trade<\/p>\n
By Riyadi<\/p>\n
NUSA DUA, Bali (JP): Australia and Indonesia pledged here on
\nThursday to take concerted measures to reinvigorate their two-way
\ntrade which has of late been declining.<\/p>\n
Ministers from both countries, gathered here for the fourth
\nmeeting of the Australia Indonesia Ministerial Forum, said in a
\njoint statement that the return of growth to Indonesia's economy
\nwould play a pivotal role in reviving the disrupted bilateral
\ntrade.<\/p>\n
They said that continued domestic reforms and the
\nliberalization of trade and investment in the two countries and
\nglobally would improve the scope for an increase in both
\ncountries' exports.<\/p>\n
"The present level of economic relations between our two
\ncountries -- especially in the fields of trade and investment --
\nstill does not reflect the potential that we might possibly be
\nable to achieve," Coordinating Minister for Economy, Finance and
\nIndustry Ginandjar Kartasasmita said at the closing of the two-
\nday ministerial meeting.<\/p>\n
Two-way trade between Australia and Indonesia, which has
\ncontinued to grow during the past 10 years, fell to US$3.4
\nbillion last year from $3.7 billion in 1997.<\/p>\n
Nevertheless, Indonesia for the first time enjoyed a surplus
\nin its trade with Australia last year.<\/p>\n
Indonesia's exports to Australia totaled $2.1 billion last
\nyear, up 40 percent from $1.5 billion in 1997, but its imports
\nfrom Australia dropped 45.2 percent to $1.2 billion from $2.3
\nbillion in 1997.<\/p>\n
Indonesian Ambassador to Australia Wiryono Sastrohandojo said
\nIndonesia's increasing exports and decreasing imports from
\nAustralia was a logical consequence of the sharp depreciation of
\nthe rupiah against other currencies, including the Australian
\ndollar.<\/p>\n
"Because we have not much money, we can not buy many products
\nfrom Australia. And because of the rupiah's depreciation, our
\nproducts become cheaper and they buy more from us than before.
\nThat's logical," he said.<\/p>\n
The only way to increase Indonesia's imports from Australia
\nwould be to improve the purchasing power of the Indonesian people
\nby restoring positive economic growth, he said.<\/p>\n
To mend the situation, the ministers agreed to pursue various
\nmeasures, including Australia providing export credit insurance
\nto assist the continued sale of essential items from Australia to
\nIndonesia's export industry.<\/p>\n
They noted the importance of providing an adequate supply of
\nworking capital for potential Indonesian exporters to take
\nadvantage of the competitive rupiah exchange rate.<\/p>\n
Australia was also committed to helping Indonesia improve the
\nquality of its products, especially food and agriculture
\nproducts, so that these items would be able to enter Australia
\nmore easily.<\/p>\n
Trade ministers from both countries on Wednesday signed a
\nmemorandum of understanding to work to improve Indonesia's food
\ninspection and certification systems and facilitate trade in the
\nfood sector.<\/p>\n
Australian Deputy Prime Minister and Minister for Trade Tim
\nFischer noted that the abolishment of basic commodity import
\nmonopolies by the Indonesian Logistics Agency would help boost
\nAustralia's farm produce exports to Indonesia.<\/p>\n
The ministers were also committed to pushing investors from
\nboth countries to increase their cross-border investment, which
\nwould eventually boost two-way trade.<\/p>\n
"The ministers noted that new opportunities for trade and
\ninvestment would arise from the economic crisis and restructuring
\nof the Indonesian economy," the joint statement said.<\/p>\n
They identified sectors with continuing growth potential in
\nIndonesia, including agribusiness, mining and natural resources,
\ntourism, infrastructure, health, information technology and
\ntelecommunications as well as financial and management services.<\/p>\n
The ministers said both governments would pursue more trade
\nand investment through the Australia Indonesia Development Area
\n(AIDA), a regional economic zone linking northern Australia with
\neastern Indonesia.<\/p>\n
They cited agricultural production and processing, fisheries,
\noil and gas, timber and rattan, shipbuilding, tourism and
\neducation and health services as most promising sectors for
\ninvestors in the AIDA region.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/australia-indonesia-pledge-to-boost-trade-1447893297",
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"sponsor": "Okusi Associates",
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