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.