Indonesia and Australia to strengthen economic ties

Dadan Wijaksana, The Jakarta Post, Jakarta

As part of the effort to bolster economic ties between Indonesia and Australia, the governments of the two countries have pledged to double the value of their bilateral trade within the next five years, Minister of Industry and Trade Rini M. Soewandi said.

"We have enjoyed good economic ties for years. Last year, trade between Indonesia and Australia reached a record high in terms of value. And our target is to double that amount in the next five years," Rini said on the sidelines of a ministerial forum between the two countries.

Rini said there were still numerous areas the two countries could explore and take advantage of to foster trade ties.

Last year, total trade value between the two countries reached A$7.4 billion, with Indonesia's exports to Australia valued at A$4.3 billion, making Australia the 12th largest export destination for Indonesia.

For Australia, Indonesia last year was the 10th largest export destination for the country, with export value at A$3.1 billion.

The countries' economic relationship was on the agenda of Monday's meeting, which featured the largest Australian delegation ever to take part in the forum. The meeting was also the first under the Australia-Indonesia Ministerial Forum held under the administration of President Megawati Soekarnoputri.

This was the sixth ministerial forum held since its establishment in the mid-1990s, with the last coming two and a half years ago.

It is hoped this year's forum will send signals of improved economic ties between the two countries, despite the ups and downs in their political relationship.

Following the Oct. 12 blasts on Bali, the Australian government issued a travel advisory warning its citizens to avoid travel to Indonesia.

This decision was criticized by various quarters here, where it was feared the advisory would further damage a tourist industry already reeling from the bombings.

The two countries are also standing on opposite ends of the Iraq issue. While Australia has thrown its support behind a possible U.S.-led attack on Iraq, Indonesia has made it clear that war is not the best option.

Relations between the two countries plunged to their lowest levels in 1999 when Australia led an international force in East Timor to put an end to post-referendum violence.

However, Rini said that from an economic point of view, ties between the two countries continued to improve.

She said that last year, pulp and paper, and furniture and other wood products were among Indonesia's main commodities exported to Australia. Indonesia imported mostly wheat, cotton and cattle from Australia.

"Among the goods with the potential to be exported to Australia are textile and garment products, for which we can use the cotton imported from there."