Indonesia and Iran agree to expand cooperation in various sector

JAKARTA (JP): Indonesia and Iran signed an agreement yesterday aimed at further expanding bilateral relationships in various sectors, including trade, industry, technology, finance, telecommunications, post and transportation.

The agreement was signed by Indonesian Minister of Industry and Trade Tunky Ariwibowo and Iranian Minister of Trade, Post, Telegraph and Telephones Sayyed Mohammad Gharazi.

The agreement is the product of the fourth annual meeting of the Indonesia-Iran Joint Commission on Economic and Trade Cooperation, which started on Monday.

Trade between both countries reached US$389.2 million in 1995, with Indonesia's exports valued at $132.2 million against imports worth $257 million.

"It was a big increase from less than $100 million four years ago when the joint commission held its first meeting. We expect the two-way trade to reach $1 billion in the near future," said Gharazi, who made a courtesy call to President Soeharto on Monday and also met with several ministers.

Under yesterday's agreement, both countries will seek opportunities to establish joint ventures in the chemical, steel, textile, cellulose, paper, pulp, rubber and cement industries.

Iran will continue importing Indonesian paper, rubber, coconut oil, rice, medicines and textile while, in exchange, Indonesia will import cement, clinker and oil.

Indonesia called on Iran to execute quickly its plan to purchase six Puma helicopters from Indonesia's state-owned aircraft maker PT Industri Pesawat Terbang Nusantara (IPTN).

Both countries will study the possibility of using funds from the Islamic Development Bank (IDB) for economic cooperation. (jsk)