Italian PM optimistic on bilateral economic ties

JAKARTA (JP): Italian Prime Minister Romano Prodi was optimistic yesterday about the prospect of ties between Indonesia and Italy, saying that his talks here indicated a promising future in economic cooperation.

Prodi told journalists prior to his departure yesterday that he was satisfied with his discussions with President Soeharto and State Minister of Research and Technology B.J. Habibie, and that talks had revealed the potential for further cooperation in the economic sector.

The Italian prime minister arrived here Monday as part of an Asian tour to strengthen Italy's economic and trade ties in the region. He left for Manila yesterday before continuing on the next leg of his trip to Tokyo.

He said in his meeting with Habibie, the two had examined the two country's potential, noting that industrial and transportation sectors were likely to be developed.

"We expect that every cooperation between the two countries be mutually beneficial," Prodi was quoted by Antara as saying.

He added that small and medium-scale industries in Indonesia need the appropriate technology to maximize the utilization of natural resources. Italy could provide such technology, he said.

Trade balance between the two countries heavily favored Italy last year. Indonesia imported US$1.21 billion from Italy while it exported only $743.6 million.

Indonesia imports industrial machinery, cooling and heating systems, along with nonelectrical hand tools.

Italy is not known to Indonesian businesspeople as a primary export destination.

Prodi noted that overall there was great enthusiasm from many European states to enhance economic relations with Indonesia and members of the Association of Southeast Asian Nations (ASEAN).

"The purpose of my visit to Indonesia is to reach firmer cooperation with ASEAN countries," he said. (10)