Austrade to open its third Indonesian office in Medan

JAKARTA (JP): The Australian Trade Commission (Austrade) will open its third Indonesian office Wednesday.

Bruce Wallace, Australia's Jakarta-based senior trade commissioner, said yesterday that the new office, located in Medan, would cover markets in Sumatra and adjacent islands.

The new office would help Australian businesses tap growing business opportunities in Sumatra's provinces, he said.

Wallace said that Medan, with its strategic location in the Malaysia, Thailand and Indonesia growth triangle and its role as the major business center in Sumatra, was a logical place for the new operation.

"Located on the Malacca Straits, it represents an excellent regional base for Australian business expansion," he said in a statement.

Austrade's two other Indonesian offices are in Jakarta and Surabaya.

Wallace sees major opportunities in Indonesia for Australian businesses in construction, infrastructure, telecommunications, agribusiness, financial services, mining, energy and environmental services.

BHP, Australia's largest corporate entity, is currently commissioning a plant in Medan for its building products division. Several other major Australian companies have stated their intention to expand in the region.

Medan is already a major center for Australian education services, he said.

Austrade would operate in Medan in cooperation with the Australian Center and the Asean Focus Group Pty Limited.

Bilateral trade between Indonesia and Australia grew by 20 percent in the 1996 to 1997 period to over A$5 billion.

Indonesia is Australia's 10th largest trading partner and will soon be its biggest partner in the ASEAN region.

Export items from Australia demonstrating significant growth in the last 12 months included live cattle, cotton, aluminum and dairy products, Wallace said.

Significant growth in imports from Indonesia was seen in paper products and petroleum.

Australian investment in Indonesia now totals US$3 billion. (hen)