Australia still confident about Indonesia's future

JAKARTA (JP): Australia remains confident about the future of Indonesia's economy despite uncertainty over the latter's leadership transition.

Australia's Ambassador to Indonesia, John McCarthy, said his government was upbeat that Indonesians would eventually be able to manage their own political evolution.

He said Indonesia's current internal political developments had provoked discussion in many countries including Australia.

"There is no suggestion as yet of any influence in the conduct of our governmental or business confidence in Indonesia," McCarthy said before addressing a dinner hosted by the Indonesia- Australia Business Council.

"We continue to have considerable confidence on the economy of this country... And we are optimistic about the way Indonesia will evolve in the 21st century," he said.

Australia expects economic relations with Indonesia to continue to blossom despite several differences, especially with regards to East Timor.

McCarthy said two-way trade should continue to grow at the current rate of between 25 percent and 30 percent a year because there was still huge potential for the economic relationship to develop.

Trade between the two is worth A$4.3 billion. Australian exports are worth $2.8 billion and Indonesian exports are worth $1.5 billion.

McCarthy said the relationship had some great elements, some of which were very positive.

"In relation with East Timor, we have differences with you," he said.

"We would like the situation in East Timor to evolve peacefully and beneficially to the inhabitants of East Timor, that is a matter that Indonesia has to take with others.

"We will work and do what we can to sport you but it is very much an Indonesian issue," he said.

But unlike most countries Australia recognizes East Timor as part of Indonesia.

The council's chairman, Sabam Siagian, a former Indonesian ambassador to Australia, shared McCarthy's view that political developments in one country would have little affect on economic relations.

Sabam announced yesterday the 24th Indonesia Australia Business Conference and Exhibition, to be held in Bali from June 15 to June 17.

"The Indonesia-Australia Business Council is one of the biggest and fastest growing business associations in Indonesia ... To date, several significant contributions have been achieved through multi-industry cooperation and partnership," Sabam said.

With the theme of Indonesia-Australia: the Winning Team, the conference will cover business and industrial topics, including consumer products, health care, construction, agribusiness, property, mining and energy, investment, funding and tourism.

Speakers will include McCarthy, PT Bakrie & Brothers president Tanri Abeng, Center for Strategic and International Studies executive director Mari Pangestu, PT Coca Cola Amatil Indonesia president John Brady, Health Care Australia's Walter Klement, the Indonesian Construction Association's Fatchur Rochman and TASA International's Warren McGregor. (rid)