Chile, Indonesia sign treaty to boost bilateral trade ties
Chile, Indonesia sign treaty to boost bilateral trade ties
Fitri Wulandari, The Jakarta Post, Jakarta
The Indonesian and Chilean governments signed on Wednesday an
economic cooperation agreement to boost bilateral trade.
The Memorandum of Understanding (MOU) on Economic and
Technical Cooperation was signed on the first day of Chilean
President Ricardo Lagos Escobar's state visit here, and
highlighted cooperation in oil and gas, tourism and
transportation.
"We agree to increase the value and the volume of our trade by
further encouraging the participation of our private sector,"
President Megawati Soekarnoputri said in a joint press briefing
after the signing ceremony.
Mangasi Sihombing, Director-General of Information, Public
Diplomacy and International Treaties at the Ministry of Foreign
Affairs, signed the MOU on behalf of the government, while Vice
Minister for Foreign Affairs Christian Barros represented the
Chilean government.
President Lagos is on a two-day state visit to Indonesia as
part of his 10-day global tour that started in South Africa.
Lagos said the visit to Indonesia was significant for the
countries to enhance trade relations, particularly as the two
were members of the Asia-Pacific Economic Cooperation (APEC).
"Indonesia and Chile are committed to integrate in a global
world. This is why we are here," Lagos said.
In the economic arena, Indonesia and Chile have decided to
encourage an agreement to avoid double taxation, the reduction of
which would boost investment between the two.
The countries have also agreed to speed up cooperation between
their flagship carriers to "anticipate the increase in flow of
people and goods".
Chile will also cooperate in the oil and gas sector; the
country is particularly interested in importing natural gas from
Indonesia.
The trade value between Indonesia and Chile jumped from
US$150.2 million to $155 million last year. Indonesian exports to
Chile stood at $78 million and import was $77 million in 2003, an
increase from $64.2 million in 2002.
During the bilateral talks, President Megawati asked Lagos to
help speed up negotiations between state-owned steel maker PT
Krakatau Steel and a Chilean company to import iron ore from
Chile amid rising domestic demand.
The Indonesian government has also expressed an interest in
increasing cooperation in the fisheries sector with Chile.
To promote tourism, Indonesia and Chile are to grant
reciprocal visa-free facilities.
Lagos is scheduled to meet business leaders and academics
today (Thursday) before leaving for Singapore and New Zealand.