Govt to go ahead with Russia deal despite probe
Govt to go ahead with Russia deal despite probe
Adianto P. Simamora, The Jakarta Post, Jakarta
Minister of Industry and Trade Rini MS Soewandi said on Thursday that the government would go ahead with its countertrade deal with Russia even though the House of Representatives was still conducting a probe into the deal.
She said that her office had already delivered palm oil to Russia as part of the US$192 million countertrade deal.
"We have delivered palm oil (CPO) to Russia. We may deliver textile products this month and that will be followed by tobacco in August," Rini told The Jakarta Post after a meeting with the House Commission V on industry and trade affairs.
The Indonesian Palm Oil Producers Association (Gapki) earlier said that the State Logistics Company (Bulog) would purchase some 40,000 metric tons of CPO valued at US$15 million via the association.
Rini assigned Bulog to execute the countertrade deal.
Maruli Gultom, one of Gapki's chairpersons said that a number of Gapki members, however, had refused to sell their products to Bulog due to unfavorable conditions set by the latter.
One condition is that Bulog will not take any responsibility if buyers in Russia reject the palm oil.
"As far as I know, there is no final agreement yet between Bulog and Gapki about the purchase of 40,000 tons," he told the Post.
He said that his company had also delayed selling its CPO to Bulog.
"The countertrade is actually good as we can raise CPO exports to Russia but the requirements have discouraged local producers from selling to Bulog," said Maruli, who is also president director of Astra Agro Lestari.
Data from the association showed that Indonesia exported some 13,044 tons of CPO to Russia in 2002, far lower than the previous year's figure of about 40,719 tons.
Indonesia is the world's second-largest palm oil producer after Malaysia.
Elsewhere, Rini said that the countertrade deal with Russia was one way to jack up exports to non traditional export markets amid an economic downturn in developed economies like the U.S. and Japan.
Under the countertrade deal, Indonesia will receive two Sukhoi jet fighters and two helicopters from Russia.
Russia will receive some 30 commodities and manufacturing products from Indonesia of equal value. The commodities include CPO, tobacco, textiles, coffee, rubber, chocolate, black pepper, electrical appliances and fishery products.
The House, meanwhile, has set up a special team to investigate allegations that President Megawati Soekarnoputri had violated trade and budget regulations in making the Sukhoi purchase. Rini is also being question in the affair, dubbed "Sukhoigate".
Meanwhile, House Commission V gave its support to Rini to continue countertrade deals with other non-traditional markets to help increase the country's exports earnings.
"The commission V supports Rini's move to boost countertrade in a bid to increase the country's non-oil and gas exports in the future," Suryadharma Ali chairman of Commission V said.