Australia vows to promote trade with Indonesia
Australia vows to promote trade with Indonesia
JAKARTA (JP): Australian Deputy Prime Minister/Minister for
Trade Tim Fischer made it clear yesterday that his government
will not change its policy toward Indonesia and will further
promote bilateral trade.
Speaking at a breakfast meeting hosted by the Indonesia-
Australia Business Council yesterday, Fischer pointed out that
his new coalition government is unequivocally committed to the
development of closer economic ties with the Asian region,
including Indonesia.
"I believe that this commitment is reflected in the fact that
both Mr. Downer and myself have made Asia our first port of call
as we commence overseas activities associated with our respective
portfolios," he said in reference to Australian Foreign Affairs
Minister Alexander Downer.
He noted that his coalition government needs to do a lot more
to make Australia one of the truly dynamic Asia-Pacific
economies.
"The government has started by moving quickly to get
macroeconomic policy back on course," he said.
Measures that will revitalize and deepen micro-economic reform
and improve Australia's competitiveness are on the drawing board,
he said. "Our priority areas include labor market reform, the
waterfront, communications, transport and energy."
With respect to economic links with Indonesia, Fischer said
that Australia's domestic economic policy will be key to
developing bilateral ties.
He said that Indonesia is also going down a similar path of
economic reform to boost its trade and investment performance.
"President Soeharto's government has a remarkable record of
effective economic management and has sustained an equitable
economic growth. It has embarked resolutely on the challenging
task of trade liberalization and economic deregulation," he said.
Saying that President Soeharto has played a key leadership
role in the APEC (Asia Pacific Economic Cooperation) forum, he
noted that Indonesia's domestic economic approach is reflected in
its commitment to the regional economic grouping and its
principles.
Expansion
Asked about Australia's intention to increase trade relations
with Indonesia, he said, "We'll particularly expand in the sector
of services that include insurance and tourism."
Indonesia saw its trade deficit with Australia increase from
US$1.1 billion in 1994 to $1.4 billion last year. During 1995,
its exports to Australia reached only US$0.4 billion, while
imports from Australia amounted to $1.8 billion.
The chairman of the Indonesia-Australia Business Council,
Sabam Siagian, said that the trade deficit is not a serious one
and can be tackled if Indonesian businesses are more active in
entering the Australian market.
"I noticed that there is an impression among our businessmen
here that the Australian market is restricted. They don't see the
potential of the country's population. Although their number is
only 18 million, they have a per capita income of $16,000," he
told The Jakarta Post.
Sabam, who was a former Indonesian ambassador to Australia,
added that Australia's high per capita income presents an
opportunity for Indonesia to market its goods there.
"There are many opportunities for us. But of course we have to
improve things like quality and on-time delivery," he noted.
He acknowledged, however, that there are still barriers
preventing Indonesia from benefiting from the Australian market.
He cited the quarantine procedure as one example.
"Sometimes it is an obstacle to our food products. But it can
be tackled," he said. (13)