RI, Libya to engage in countertrade deal<\/p>\n
Evi Mariani, The Jakarta Post, Jakarta<\/p>\n
Indonesia and Libya have agreed on a countertrade deal worth
\nUS$540 million under which the Indonesia would export 16
\ncommodities in exchange for crude oil, a senior official said.<\/p>\n
The agreement was signed on Aug. 25 during a visit to Libya
\nled by Minister of Industry and Trade Rini M.S. Soewandi.<\/p>\n
\"The agreement has to be realized by the end of this year,\"
\nthe ministry's Director General for Foreign Trade Sudar S.A. told
\na press conference on Friday.<\/p>\n
He explained Indonesia would import 50,000 barrels of crude
\noil per day for a full year from Libya, which in return would
\nimport commodities like textiles and garments, footwear,
\ntoiletries, tea, coffee, seasoning, timber, furniture,
\nplasticware, paper and stationery, electronic goods, tires,
\nrubber products, vegetable oil, auto parts and aircraft.<\/p>\n
\"Based on an assumption that the international crude oil price
\nstands at US$30 on average per barrel, the countertrade is worth
\naround $540 million,\" he added.<\/p>\n
Next week, a joint committee between Libya and Indonesia will
\ndiscuss the details. According to the agreement, the committee
\nhas to finish discussing the details by the end of this year. If
\nit fails, the agreement will be terminated.<\/p>\n
Sudar said the country's exporters were invited to sell their
\nproducts through the countertrade program.<\/p>\n
\"We have appointed Perusahaan Perdagangan Indonesia (PT PPI)
\nto administer the export system in the countertrade deal,\" he
\nsaid.<\/p>\n
PT PPI is a state-owned trading company handling the import of
\ncertain commodities like liquor and the export of products
\nparticularly from small and medium-scale enterprises (SMEs). The
\ncompany was formed through a merger earlier this year of three
\nstate-owned trading companies PT Dharma Niaga, PT Cipta Niaga and
\nPT Pantja Niaga.<\/p>\n
Sudar was optimistic that the country's exporters could
\nfulfill the large demand from Libya, saying that Indonesian
\nproducers were experiencing over production.<\/p>\n
In 2002, Indonesia booked $5.8 million in exports to Libya,
\nmostly from selling automobile tires, steel cables, electronic
\ngoods, textiles, garments and soap.<\/p>\n
Meanwhile, Libya's exports to Indonesia reached $29,000 from
\nthe sale of oil and iron ore.<\/p>\n
If the agreement is realized, it will help increase the
\ncountry's exports, which for this year are targeted to reach $4.7
\nbillion.<\/p>\n
Besides visiting Libya, Rini also visited Pakistan, meeting
\ntrade minister Humayun Akhtar Khan and discussing the possibility
\nof implementing a free trade area between the two countries.<\/p>\n
\"Indonesia and Pakistan will form a forum called 'Closer
\nEconomic Partnership' that will be the embryo of a free trade
\nagreement,\" said Sudar.<\/p>\n
Besides the forum, the two countries will also form a team to
\nidentify products to be included in the planned free trade pact.<\/p>\n
In 2002, Indonesia's exports to Pakistan reached $264.9
\nmillion. mostly from palm oil, paper, textiles, garments, tea,
\nelectronics goods and chemicals.<\/p>\n
Meanwhile, imports from Pakistan in 2002 reached $85.3 million
\nfrom purchasing rice, beans, textiles, cotton and leather.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-libya-to-engage-in-countertrade-deal-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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