JP/ /13postwar

JP/ /13postwar

Govt aims to supply post-war Iraq market

Zakki Hakim
The Jakarta Post
Jakarta

Indonesia is in a better position than most other countries to
supply certain commodities, including food and textiles, to Iraq
after the war, given the warm trading relations both countries
have enjoyed in the past, several government officials said on
Tuesday.

Djasdi Darwis, the chairman of the Indonesian Trade Promotion
Center (ITPC) in Dubai, said that prior to the 1991 Gulf War,
Indonesia had signed a memorandum of understanding (MOU) for a
countertrade, in which Indonesia would import 30,000 barrels of
oil per day from Iraq in exchange for commodities such as
textiles, timber, tin and crude palm oil.

But the agreement was frozen after the 1991 Gulf War.

"As far as I know, we were the only country having this kind
of an agreement with Iraq during those years," he said, adding
that Indonesia could ask to reactivate the MOU after the war.

Iraqis still consider Indonesians as friends given Indonesia's
opposition to the 1991 Gulf War and the current U.S.-led attacks,
he said.

The chairperson of the ministry's National Agency for Export
Development (NAFED), Diah Maulida, concurred, saying that the
fact that the majority of Indonesians shared a similar religion
with most of the Iraqis would also put Indonesia in an
advantageous position to compete for the market.

"If, after the war, the embargo on Iraq is lifted then
Indonesia has a very good chance of dominating the market with
certain commodities.

"For instance, we could supply them with our halal (permitted
under Islamic law) food," she said.

Djasdi said most of the projects in rebuilding post-war Iraq
would go to companies in the United States and its allies, but
the countries would not be able to keep the market to themselves.

Therefore, Indonesia still has a chance to grab a share of the
market, he said.

"We must be proactive. Otherwise, other countries will do so
and we will get left out," he said.

However, he did not explain how Indonesia could secure some of
the rebuilding projects as they will all be reportedly controlled
by the U.S. government.

Despite the fact that the war is far from being over, reports
have said the U.S. Agency for International Development (USAID)
has awarded contracts for the projects to U.S. firms.