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)