Belgrade hopes to enhance economic ties with RI

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.