Jetro, Kadin sign trade and investment deal

The Jakarta Post, Jakarta

The Japan External Trade Organization (Jetro) and the Indonesian Chamber of Commerce and Industry (Kadin) signed on Monday a Memorandum of Understanding (MoU) to expand cooperation in trade and investment.

Under the MoU, valid until February 2008, both sides will promote trade and investment cooperation, particularly in infrastructures and factories with low-productivity labor.

"We will assign the supporting industry to promote trade and investment and to strengthen the competitiveness of small and medium enterprises (SMEs), organize seminars as well as send an expert to Kadin office to identify and analyze information needed," said Jetro CEO and chairman Osamu Watanabe.

In return, Jetro requested Indonesia to overcome rampant corruption practices.

Chairman of Kadin M.S. Hidayat said the assignment of the supporting industry by Jetro would be implemented early next year, while direct investment in infrastructure will start in the second quarter of this year.

"Kadin will send a delegation to Japan in May or June to explain the needs, roadmap, figures and data of SMEs and the targeted investors will visit Indonesia in October," he said.

Kadin deputy chairwoman for SMEs and cooperative Eva Riyanti Hutapea said she would coordinate the mapping of SMEs in the country this year, in cooperation with their representatives in various industries.

Meanwhile, Kadin deputy chairman for industry, technology and maritime affairs Rachmat Gobel said the Japanese supporting industry, consisting of SMEs, would cooperate with their Indonesian counterparts not only in electronic and automotive sectors but also in other potential sectors such as textiles and farming. (004)