Countertrade to tackle emerging trade barriers<\/p>\n
JAKARTA (JP): Countertrade could help tackle various emerging
\ninternational trade barriers, President Soeharto said here
\nyesterday.<\/p>\n
When opening an Asia Pacific Countertrade Association
\nconference, Soeharto said countertrade could help solve various
\neconomic challenges, such as fierce competition and capital
\nlimitation.<\/p>\n
\"Indonesia has experience in countertrade, both through
\ngovernment-to-government and inter-private sector agreements,\"
\nSoeharto said at the opening ceremony.<\/p>\n
Indonesia initiated a countertrade policy in the mid-1980s to
\ntackle the draining of foreign exchange reserves following the
\nsharp drop in oil prices.<\/p>\n
Indonesia's non-oil exports from countertrade agreements
\nsurged to US$1.2 billion in 1995 from a mere $140 million in
\n1982. But it was still small compared to overall non-oil exports
\nof $34.95 billion in 1995.<\/p>\n
Nevertheless, Soeharto said, the countertrade system could
\nbring enormous benefits. It created new markets and ensured
\nfinancial support for raw materials and capital goods purchases.<\/p>\n
The system could also facilitate the transfer of technology
\nand attract new investment, the President said.<\/p>\n
Indonesia has used a countertrade or offset policy with its
\ntrading partners in selling or purchasing high-tech products.<\/p>\n
Last year, Indonesia counter-traded domestically built
\naircraft for Thai glutinous rice.<\/p>\n
And last month, the government offered some 40 commodities,
\nranging from rubber to cosmetics, to Russia in exchange for
\nSukhoi jet fighters and helicopters.<\/p>\n
The association's president Ch. Kamm said countertrade was
\nbecoming a prominent tool to address bilateral trade imbalances
\nbetween countries.<\/p>\n
\"As such, it positively contributes to cross-border
\ninvestment, joint ventures, cooperation, alliances, technology
\ntransfers and creative unconventional finance structures,\" Kamm
\nsaid.<\/p>\n
The conference's chairman, Hashim Djojohadikusumo, reported
\nthat 175 participants from 24 countries, including Iran, Germany,
\nCroatia, Ukraine, the Czech Republic, the United States,
\nAustralia and Finland, participated at the conference. (prb\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/countertrade-to-tackle-emerging-trade-barriers-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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