Bosnia signs MoUs with RI to boost trade ties

Bosnia signs MoUs with RI to boost trade ties

Veeramalla Anjaiah, The Jakarta Post, Jakarta

Bosnia Herzegovina wants to develop its relationship with
Indonesia and put more emphasis on trade and economic
cooperation, its foreign minister said in Jakarta.

Minister of Foreign Affairs Mladen Ivanic said his country,
which is a little smaller than Aceh in terms of size and
population, had good relations with Indonesia since the country
was created in 1992.

"Indonesia was one of the first countries that recognized
Bosnia and Herzegovina in May 1992. Now, it's the time to give a
new dimension to our relations by strengthening existing ties on
one side and putting a special emphasis on the improvement of
economic relations on the other," Mladen Ivanic told The Jakarta
Post at the end of his three-day visit to Indonesia on Thursday.

Ivanic and his entourage arrived in Jakarta on Tuesday.

Bosnia and Herzegovina may be a small nation far from
Indonesia, but three of Indonesia's six presidents have visited
the area. Sukarno went to Sarajevo in the 1960s when it was part
of the former Yugoslavia, while Soeharto and Megawati
Soekarnoputri visited the new nation in 1995 and 2002,
respectively, to lay the foundation for strong bilateral ties
between the two countries. President Susilo Bambang Yudhoyono is
expected to go to Bosnia Herzegovina next year -- but as Ivanic
says, he has been there already.

"Indonesia played a significant role in our struggle to
establish our own country. It deployed its forces to Bosnia and
Herzegovina under a UN peacekeeping mission in 1990s. Even
President Susilo was in Bosnia in 1995 as a UN military
observer," the journalist-turned-politician who has a PhD in
economics, said.

Indonesia built one of Sarajevo's biggest mosques, the
Istiqlal Mosque, in 2001. About 40 percent of Bosnia-
Herzegovina's four million people are Muslims.

While political relations have always been warm, economically
the total bilateral trade is still small, at only US$1 million
this year.

"I must admit the trade between two countries is very low
given both countries' potential. That's why I have brought a
delegation from my country's chamber of commerce to improve the
situation in the economic field. Both countries' chambers of
commerce signed a memorandum of understanding (MoU) on Wednesday
to improve bilateral trade," the minister said.

Indonesia had a bright future due to the potential of its 230
million people, vast natural resources and its democratically
elected government, he said.

Ivanic met with Indonesian counterpart Hassan Wirayuda on
Wednesday and signed a MoU regarding bilateral consultations.

"Under this MoU, both countries officials will meet every
three years to discuss all the aspects of the bilateral
relationship."

As a modern city, Ivanic said he fell in love with Jakarta at
first sight due to its high rise buildings and modern
infrastructure.

The situation in Bosnia and Herzegovina in recent years had
improved a lot, he said. Its economy had been growing at over 5
percent per annum since 2001.

"Bosnia and Herzegovina is no longer in the headlines. This is
a good sign. Ours is a stable and peaceful country with so many
opportunities. It is an attractive market for Indonesian goods."

Indonesian businesses could also export their goods to
Croatia, Macedonia, Bulgaria and Serbia Montenegro through Bosnia
and Herzegovina, he said.

One thing Bosnia and Herzegovina could contribute to Indonesia
was its experience in the power sector and coal mining.

"Our major power companies are already working in Indonesia.
We want to expand their operations in terms of volume."

Indonesia largely exports cacao, furniture, wheat and wheat
products, wood and carpets to Bosnia and Herzegovina and imports
electrical products, machines and mechanical equipment from that
country.

Both countries also agreed to abolish visas for diplomats and
foreign service passport holders.

Indonesia, Ivanic said, had agreed to open an embassy in
Sarajevo very soon.

"It is an important decision. The new Indonesian embassy will
help in strengthening relations between both countries."

During his stay in Jakarta, Ivanic met Vice President Jusuf
Kalla, businesspeople and political and civil leaders.

He also delivered a lecture on "Bosnia and Herzegovina: The
Role of the International Community" at a round table discussion
held at the Indonesian Council on World Affairs.