Australia wary of RI wheat importer's move

Australia wary of RI wheat importer's move

SYDNEY (Reuters): Indonesia would have no difficulty in
finding alternative supplies of wheat if importers moved to ban
Australian imports because of the crisis in East Timor, an
Australian farm official said on Saturday.

Indonesian wheat importers had decided to cut back or halt
purchases from Australia in another sign of worsening relations
between the two countries, Indonesian newspapers reported earlier
on Saturday.

"There is plenty of wheat around the world that they could
buy," John Lush, president of the Grains Council of Australia
told Sky News Television.

"Indonesia has been a very important market for Australia and
has in fact taken two-and-a-half-million tons on an annual basis,
so we'd be very disappointed if we lost that market," Lush added.

However, Lush labeled the press reports as "rhetoric" at this
stage, and questioned whether Indonesia was prepared to "mix
politics with trade" over East Timor.

Australian wheat exporter AWB Ltd said on Saturday said it was
unaware of any cancellations in Indonesia orders so far but
expected to have a clearer read on the situation on Monday.

"We are aware of the reports, but we do not know of any
exports being stopped, AWB spokeswoman Kelly Broad told Reuters.

One of Indonesia's largest wheat importers, PT Sriboga Ratu
Raya, has said it will stop buying wheat from Australia from
October 1.

"Starting from October 1, 1999, we will shift our imports to
countries outside of Australia, those which have friendly
political relations with Indonesia," Sriboga chief Bustanil
Arifin told the local press.

The Jakarta Post quoted Arifin as saying all Indonesian wheat
importers had agreed at a meeting this week to stop buying from
Australia.

Indonesia has accused Australia of overreacting to the
violence in East Timor. Australia is leading UN forces trying to
restore order to the territory and was among Western countries
who pressured Jakarta to allow foreign troops in.

Indonesia has already suspended a security pact with its
neighbor, and some major Australian firms have evacuated staff
from Indonesia because of fears for their safety. Anti-Australia
protests have been staged almost daily in Indonesian cities.

Indonesia ranks 10th among Australia's trading partners, with
two-way trade valued at A$5.5 billion (US$3.6 billion) a year.

Australia's is the single largest exporter of wheat to
Indonesia.