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.