Indonesia and Turkmenistan agree on direct trade

JAKARTA (JP): The governments of Indonesia and Turkmenistan agreed yesterday to begin direct trade.

President Soeharto and his counterpart Saparmurat Niyazov explored the trade areas that the two countries can develop.

Minister/State Secretary Moerdiono told journalists that Indonesia is interested in Turkmenistan's high grade cotton, sulfur and oil.

Niyazov, accompanied by his deputy premier, foreign minister and other officials and business leaders, arrived here on Wednesday for a three-day state visit aimed at exploring economic, trade and cultural cooperation.

Soeharto asked related ministers take concrete steps to carefully study the two countries' economic potential, he said.

"Specifically the President asked them to look into the possibility of Indonesia setting up tea and cotton factories in Turkmenistan," he said.

He said Central Bank Governor Soedradjat Djiwandono and his Turkmenistani counterpart would meet to discuss problems surrounding the payment procedures.

To boost bilateral trade, officials from the two countries have signed two memorandums of agreement on economics and investment.

Meanwhile, Prime Minister Shikmuradov Boris Orazovich said Turkmenistan was impressed by Indonesia's role in the Non-Aligned Movement.

President Niyazov also attended a luncheon hosted by Aburizal Bakrie, chairman of the Indonesian Chamber of Commerce (Kadin) at the Grand Hyatt Hotel yesterday.

Chief of the Kadin Committee for the Commonwealth of Independent States, Hasjim Djojohadikusumo, said Niyazov was the first head of state from a former Soviet state to visit Indonesia.

He said Niyazov's visit opened a chance for the Indonesian business to introduce themselves in the Central Asian country, which has been building its economy since it broke from the Soviet Union.

Niyazov canceled his plan to visit the Indorama textile factory in Purwakarta, about 80 kilometers east of here. (pan)