Indonesia, Argentina want to boost trade ties

JAKARTA (JP): Argentinean and Indonesian businessmen were urged on Tuesday to boost bilateral trade relations between both countries.

Indonesian special envoy to South America Suryo B Sulisto called on Indonesian businessmen to penetrate Argentina's market more aggressively, citing that neighbors Malaysia and Singapore had a strong business establishment in that country.

"We depend too much on traditional markets like Europe, the United States and Japan," Suryo said on the sidelines of a business luncheon organized by the Indonesian Argentinean Chamber of Commerce and Industry (IACCI).

Suryo said demands in these traditional export markets were often saturated, whereas opportunities in South American markets were still large.

He said Indonesia always experienced a deficit in trade with Argentina. Indonesian exports reached US$30 million in 1999, while Argentina's exports amounted to $80 million in the same year.

IACCI data says Indonesia has export opportunities in Argentina for its agricultural products, textiles, construction material, electricity, computers and software, aerospace, housewares, industrial equipment and medical and scientific equipment.

IACCI chairman Alan Wolff called on Argentinean businessmen to invest in Indonesia.

Wolff said unrest in parts of Indonesia would not pose any problems for Argentinean investment in Indonesia.

"Security matters like we have in Aceh and Maluku are not a problem because most would invest in Java," he said.

He said by establishing a production plan in Indonesia, Argentinean investors could have better access to Southeast Asian markets. Their products could cut the transportation costs to make their products cheaper.

He said between 10 and 12 Argentinean companies had established operations in Indonesia, including oil and gas company YPF-Maxus, which is the country's largest offshore oil producer with an output of about 150,000 barrels per day. (03)