Chinese face obstacles in RI trade<\/p>\n
JAKARTA (JP): While Chinese businessmen expressed their
\noptimism that Indonesia offers many advantages to China, they
\nstressed that some challenges need to be dealt with as well.<\/p>\n
At a seminar organized by the Association of Indonesia-China
\nEconomic, Social and Cultural Cooperation, and Yayasan Economica
\nof the University of Indonesia, two Chinese economic officials
\ndiscussed their hopes and reservations about doing business in
\nIndonesia.<\/p>\n
"China and Indonesia could become partners in developing the
\nworld market on a mutually-beneficial basis." Zhao Chunhua,
\ndeputy director general of the Department of Science and
\nTechnology, said.<\/p>\n
"However," he added, "the two sides have to address problems
\nfor smooth growth of economic and trade sanctions, commodity
\ninspections and Chinese traders' terms of stay in Indonesia."<\/p>\n
"Indonesia only accepts inspection certificates issued by SGS
\nand rejects certificates by Chinese commodity inspection
\ndepartments," he explained.<\/p>\n
The Indonesian government has assigned the Swiss-based Societe
\nGenerale de Surveillance (SGS) to inspect Indonesia's imports at
\npoints of loading since 1985.<\/p>\n
Now, according to an international trade agreement, Chinese
\ncommodity inspections have become an involved process in which
\nthe China Export Commodity Inspection Corporation (CECIC) must
\nconsult with the Hong Kong SGS office before they can ship goods
\nto Indonesia.<\/p>\n
"This time-consuming procedure slows the circulation of export
\ndocuments and raises the fees that importers must pay," he said.<\/p>\n
Joint inspection<\/p>\n
He added, however, that a joint inspection station would be
\nestablished in China by the end of the year.<\/p>\n
The official was not as optimistic about the visa situation
\nfor Chinese nationals traveling to Indonesia.<\/p>\n
"Our two countries have begun to launch mutually beneficial
\njoint projects. However, Indonesian immigration authorities only
\nallow a 28-day stay for each entry visa given to Chinese
\ncitizens."<\/p>\n
Another speaker at the seminar, Sun Xiaomen, also discussed
\nthe visa situation.<\/p>\n
"We suggest that you simplify the procedure by offering a visa
\nof three to five years to foreigners with some requirements such
\nas that the holder register every year."<\/p>\n
Xiaomen, general manager of the China National Technical
\nImport and Export Cooperation, continued his criticism with equal
\ncandor when dealing with the problem of poor contract
\nperformance.<\/p>\n
"It is a pity that some contracts signed by parties in
\nIndonesia see poor performance because of breaches of contract by
\nsome Indonesian merchants," he said bluntly. "In the case of the
\nCo-generator Power Plant Contract, the Chinese parties involved
\nsuffered terrible losses. We are anxiously expecting some steps
\nto be taken by the Indonesian government to solve the problem."<\/p>\n
Despite these criticisms, however, both men seemed confident
\nabout business prospects in Indonesia. (Zhao) Chunhua said that
\ntwo-way trade between China and Indonesia had increased steadily
\nfrom 1990, when the two countries resumed diplomatic relations.<\/p>\n
"Indonesia has emerged as China's second largest trading
\npartner in Southeast Asia after Singapore. Economic and
\ntechnological cooperation between the two countries showed great
\nprogress in recent years in which 84 joint-venture projects have
\nbeen established or are waiting for approval in Indonesia," he
\nsaid.(icn\/dlz)<\/p>\n
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