Many countries offer barter deals to RI

JAKARTA (JP): China, India, South Korea, Vietnam and a number of European countries have offered countertrade arrangements with Indonesia to help the latter cope with its financial crisis, a senior official said here on Wednesday.

Director General of International Trade Djoko Moeljono said India and China expected to trade medicines for crude oil, sawn timber, plywood and crude palm oil (CPO) while Vietnam wanted to barter its rice with urea fertilizer.

European countries, such as Austria, Belgium and France have inquired about trading aircraft spare parts with crude oil and liquefied natural gas (LNG).

"South Korea expects to trade raw materials for shoes with Indonesian crude oil, LNG and natural rubber," he added.

But Djoko said some of the commodities requested by the foreign countries could not be provided because they not only had a high export value but were also needed to meet local demand.

"Exports of CPO products and urea fertilizers are limited to ensure a sufficient supply to meet local demand," he said.

Selling LNG and crude oil under a barter deal would also be difficult because they are usually sold through state-owned oil and gas company Pertamina's long-term contracts.

However, Djoko said that Indonesia would agree to countertrade on several commodities, such as farming products.

"We can, for example, meet China and India's demand to trade sawn timber and plywood with medicines. South Korea's demand for natural rubber will also be fulfilled." (gis)