Indonesia, Iran form joint team to bolster trade

Indonesia, Iran form joint team to bolster trade

JAKARTA (JP): Indonesia will establish a special team aimed at
enhancing commercial ties with Iran, a potential gateway to the
Central Asian market.

The creation of the team was announced following a closed-door
meeting between Iranian President Hashemi Rafsanjani and
President Soeharto at Merdeka Palace yesterday.

"President Soeharto has instructed his ministers to set up a
team with Iran to observe and commence concrete steps for the
realization of the agreements reached by the two presidents,"
said Minister/State Secretary Moerdiono.

During Soeharto's visit to Tehran last November, Iran availed
itself as an entry point for Indonesian exports coming into the
Central Asian region.

According to Moerdiono, talks on political matters were barely
discussed by both Soeharto and Rafsanjani since there are no
politically contentious issues existing between the two
countries.

Instead, Soeharto talked about developments of the Asia
Pacific Economic Cooperation (APEC) forum which he chairs and the
APEC leaders' meeting in Bogor next month.

APEC groups together the 17 economies of Canada, United
States, Mexico, Japan, China, Hong Kong, Taiwan, South Korea,
Australia, Papua New Guinea, New Zealand and the six members of
the Association of South East Asian Nations (ASEAN) -- Indonesia,
Thailand, Philippines, Singapore, Brunei and Malaysia.

Rafsanjani arrived on Thursday to begin a three-country tour
of Islamic states in southeast Asia, including Brunei and
Malaysia.

Though not an Islamic state, 87 percent of Indonesia's 185
million population are Moslems, making it the world's largest
Moslem country.

The Iranian President, on his three-day trip here, is
accompanied by an entourage of 127 people which includes his
wife, daughter, four cabinet ministers and some three-dozen
security personnel.

While Rafsanjani and Soeharto were engaged tete-a-tete, a
separate meeting was also held by Foreign Minister Ali Alatas and
his Iranian counterpart Ali Akbar Velayati, focusing on the
importance of economic ties.

During the meeting Alatas asserted the significance of
regional cooperation between the Middle East and ASEAN.

To facilitate this cooperation, ASEAN Secretary General Ajit
Singh is due to embark on a Middle East trip soon.

Ministers from the two countries also agreed to intensify
efforts in concluding agreements on marine and air transport
along with other technical collaborations.

Moerdiono said that steps are being taken in order to smooth
Indonesian investments in Iran specifically in the area of
textile and palm oil. He added that payment procedures were the
main trade hindrance existing between Iran and Indonesia.

Rafsanjani took time out for Friday prayers at the Istiqlal
mosque before heading to the state aircraft manufacturer (IPTN)
in Bandung.

Last year Iran purchased a number of Super Puma Helicopters
from IPTN as part of a counter-trade deal with Indonesia.

Rafsanjani is scheduled to meet with a number of ulemas, or
Moslem scholars, this morning before leaving for Brunei.(mds)