Islamic Chamber of Commerce events due here

Islamic Chamber of Commerce events due here

JAKARTA (JP): Indonesia will host four business events organized by the Islamic Chamber of Commerce, Industry and Commodity Exchange from Oct. 16 to Oct. 29.

Secretary-General Aqeel Ahmad Al Jassem told the press after the chamber's business gathering yesterday that Jakarta will host the organization's 14th general assembly meeting, 28th executive committee meeting, 3rd private sector meeting and 6th trade fair.

The chamber of commerce is an affiliate of the Organization of Islamic Conference (OIC), which groups 52 countries including Indonesia.

The chairman of the Middle East and OIC Committee of the Indonesian Chamber of Commerce and Industry (Kadin), Sudradjat Djaya Pertjunda, said that Kadin is to conduct the meetings at the Jakarta Convention Center, while the National Agency For Export Development is to coordinate the trade fair at the Kemayoran Jakarta Fairground.

"Some 1,000 business people and delegates from all OIC member countries as well as non-member countries such as Japan, the United States and the European Union will participate in the events," Sudradjat said.

Minister of Industry and Trade Tunky Ariwibowo said in a written speech at yesterday's gathering that Indonesia has so far conducted trade transactions with 40 OIC countries.

Tunky said that Indonesian exports to OIC members reached US$2.2 billion in 1994, less than 10 percent of Indonesia's total exports.

Indonesian exports to OIC countries were primarily wood products, textiles, pulp and paper, electronics and electric equipment, palm-oil products, chemicals and leather products.

Indonesian imports from OIC countries reached nearly $2 billion in the same year, 52 percent of which was oil and gas from Saudi Arabia.

Muchrim Hakim, executive chairman of the Kadin committee, said that Indonesian enterprises should start promoting their exports to other OIC countries in anticipation of the free trade era.

"If Indonesian products are edged out by more competitive goods from Southeast Asian countries in 2003 and Asia-Pacific countries in 2010, we could have new markets in the OIC countries," said Muchrim.

Singapore already exports Indonesian goods to OIC members, he added.

"We have been informed by our exporters that Indonesian exports to OIC members have been increasing but cargo transportation is limited," said Muchrim.

He said domestic shipping companies have also complained that their carriers are ready to transport goods to OIC members but that their cargo volumes are inadequate.

"I hope the Islamic Ship Owners Association, another OIC affiliate which will participate in the October events, can help facilitate trade among the organization's members," said Muchrim.

He also acknowledged that Indonesian businesses are having problems getting low-interest loans from the Islamic Development Bank (IDB).

"The borrowing fee of about 7.5 percent to 8 percent on IDB loans is still much lower than interest rates charged by commercial banks," he said.

However, he acknowledged that procedures to obtain IDB loans are very complicated.

Loans from IDB are channeled to companies through state-owned Bank Bumi Daya and Bank Pembangunan Indonesia (Bapindo). (kod)