Belgrade hopes to enhance economic ties with RI

Adianto P. Simamora and Veeramalla Anjaiah, The Jakarta Post, Jakarta

Serbia and Montenegro -- the self-proclaimed successor to the former state of Yugoslavia -- is planning to boost its bilateral trade with Indonesia by establishing a distribution center at the port of Bar, Serbia and Montenegro's new ambassador to Indonesia Zoran Kazazovic said.

The Indonesian business community can use Bar, a free trade zone and Serbia and Montenegro's leading port, to export their goods to Southern and Eastern European countries, Ambassador Kazazovic, who submitted his credentials to President Susilo Bambang Yudhoyono on Feb. 1, 2005, said.

"This (offering Port of Bar to Indonesian businesspeople) is one of my ideas to improve economic cooperation between our countries," Kazazovic told The Jakarta Post in an interview at his office recently.

He explained that many Indonesian goods currently are being assembled in Rotterdam in Holland, before being sent to other European countries.

By using Bar, Indonesian exporters can save more money as the Port of Bar is located much more closer to Eastern Europe's emerging markets.

The total trade between Indonesia and Serbia and Montenegro stood at US$20 million in 2004.

Indonesia's exports to Serbia include furniture, crude palm oil (CPO) and computer appliance products, while Jakarta imports tires and other products from Belgrade.

The 52-year-old career diplomat said measures are being taken by his office in a bid to improve the economic relationship with Indonesia.

"We have a lot of work to do in the next few years. The first priority will be to strengthen economic relations with Indonesia," the ambassador, who never worked in Asia said.

"This is very important because we used to have substantial economic relations, but over the past few years, we know the bilateral trade value has been at about $20 million. That is far below the potential of both the countries," he said.

In order to enhance the level of bilateral economic ties, said Kazazovic, the two countries must finish an impending agreement of economic and technical cooperation, which was first proposed by the Indonesian government.

"Another job is to prepare the judicial framework of the agreement," Kazazovic said.

Belgrade is also trying to reach an agreement in the areas of military and technical cooperation and science and technology cooperation.

Kazazovic said Belgrade and Jakarta had had a good relationship for a long time, based on mutual respect.

"During the past fifty years, we've had a good legacy to develop our relations. Based on our common interest, there is a lot of room for improvement in the coming years," he said.

"Serbia and Montenegro have very strong interests in developing a dynamic political dialog with Indonesia," Kazazovic said.

Serbia and Montenegro's Foreign Minister Goran Svilanavic visited Jakarta in March 2003.

During his three-day visit, Minister Svilanavic reached an agreement with his Indonesian counterpart Hassan Wirayuda to enhance relations between the two nations, especially in terms of trade.

The two ministers also signed an agreement on a visa-free facility for diplomatic and service passport holders and an agreement to exchange diplomats for training purposes.

Kazazovic said he hoped that Foreign Minister Hassan would visit Belgrade to open a new chapter in the relations.