Business and culture meet in Indonesian Moscow tour

Business and culture meet in Indonesian Moscow tour

By Melanie Morrison

MOSCOW (JP): The Indonesian business community's interest in
expanding into Russia was directly reflected by the number of top
Indonesian business people at the "Indonesian Culture in Moscow"
festival.

Among the faces that appeared at the opening night, after a
long day of firming up existing business ties or exploring new
business opportunities, were the highly successful Hashim S.
Djojohadikusumo, president director of PT. Prima Comexindo (the
largest Indonesian company in Russia), Ponco Sutowo and Dewi
Motik.

The 22-year-old Indonesian businessman Arya Witoelar, who is
the son of Indonesian Ambassador to Russia Rachmat Witoelar,
initiated the "Indonesian culture in Moscow" idea. He explained,
"I had the idea for the cultural festival because I see cultural
understanding as a crucial part of good business relations."

Guided by this belief, the Witoelars and the festival
production group Gaung Cipta Semesta approached Indonesian
companies already involved in Russia for sponsorship. It was
generously provided by PT Prima Comexindo. The Indonesian Chamber
of Commerce also sent a delegation of 40 company representatives
to seek Russian counterparts for a variety of commercial
ventures.

It seems to be a case of "don't miss the boat", as Indonesian
business people are anxious to establish themselves in the
Russian market. It is in the midst of securing a new economic
identity and Indonesia, like many other nations, are racing for
their stake in this new identity.

The Americans have already succeeded in infiltrating the
market with all-American products such as MacDonalds and Coca-
Cola. Russians are hungry for these products and will queue for
over an hour just to get a Big Mac.

Yet, while this type of U.S. domination is perhaps inevitable,
Ponco Sutowo is hopeful that Indonesia will not be pushed aside
by the barrage of American products.

Complementary

"We (Russia and Indonesia) have complementary needs," says
Ponco, whose trip to Moscow involved exploring the possibility of
building a hotel in the city. Although Ponco is a newcomer on the
Russia-Indonesia business scene, he recognizes the huge potential
for business links between the two countries.

"The relationship is perfect for reciprocal arrangements, we
have many of the natural resources they need and their
technological knowledge is high," he says, also noting that
Indonesia has a comparative advantage over many Western
countries. "We have never been at war with Russia, we are less
suspicious and a more acceptable country."

Hashim, who has been involved in trading activities with
Russia for almost five years, is also well versed in the business
potential. He is, however, also quick to explain the difficulties
in doing business in the area. Having experienced the changes in
the power base from a communist union to separate states, all
searching for their place in the international market, he knows
too well the unpredictability of working in this changing
environment.

"Logistically, working here since the collapse of communism is
a nightmare. In the Soviet days all the links were centralized,
now nothing is clear. The work practices here also take a bit of
getting used to." On the other hand, Hashim is also aware that
with the present move toward greater openness there is a
temporary gap, making it easier for a nation like Indonesia to
infiltrate the market.

To date, over a half-dozen Indonesian trading companies have
established representative offices in Moscow and this number is
set to grow as trade obstacles are reduced. The drive to boost
trade with Russia was formalized during the festival as business
people and diplomats joined together to discuss the formation of
a foundation called "Russia House". The purpose of the foundation
is to facilitate trade and cultural activities between Russia and
Indonesia.

This government, business and cultural triangle is indicative
of the new way international links are moving. At the "Russia
House" meeting, which took place on Aug. 24 at the Indonesian
embassy in Moscow, all parties felt positive that increased
dialogue between the different interest groups was the
prerequisite to establishing a strong, long-lasting relationship.

The two governments have already agreed to reschedule
Indonesia's 20-year debt, initially to be paid in annual US$100
million installments up to the year 2000. The debt will now be
repaid by the year 1996, partly through Indonesian exports as
Indonesia has an interest in seeing their goods flow into Russia.
In this way a niche market can be created in a country where
Indonesia sees the utmost potential for future cooperation.

With a new Garuda airlink between Moscow and Jakarta due to be
in operation before this October and the foundation of "Russia
House", and also plans to bring more cultural and arts groups to
Moscow, it seems that the relationship between Russia and
Indonesia is well on the way to being solid and strong.