Wed, 11 Nov 1998

Poland seeks to expand ties with Southeast Asia

JAKARTA (JP): Poland, a former socialist country and member of the Warsaw Pact, has made great strides towards democracy and a market economy. Since breaking away from the socialist system, the country has sought membership of the North Atlantic Treaty Organization (NATO) and the European Union.

The country has also been pursuing efforts to enlarging its trade with Southeast Asian nations, including Indonesia.

In conjunction with the 80th anniversary of Poland's independence which falls on Nov. 11, Benget Simbolon Tnb from The Jakarta Post interviewed Poland's Ambassador to Indonesia, Ksawery Burski, in the country's new embassy in the Kuningan area of Central Jakarta.

Question: Why do you consider Southeast Asia to be an important region to expand your exports into?

Answer: We see the region, particularly Indonesia, as a growing market that we can tap into to increase our exports. It is true that (Indonesia) is now facing an economic crisis. But I hope it'll be over soon.

Currently, this region represents only 5 percent of our total exports. But we will continue to pursue our efforts to enlarge trade relations with this region.

As you know, most of our exports go to European countries, but we want to expand exports to other regions, particularly Southeast Asia.

Due to market expansion so far, our GDP (Gross Domestic Product) has jumped by more than 50 percent over the last nine years. Last year, our economy grew by 6.9 percent. We expect this year it'll grow by around 6 percent and then next year we predict it will fall back to around 5 percent due to overheating.

Q: How do you see trade relations between Indonesia and Poland?

A: We consider Indonesia to be a potential markets for our exports. Our trade with Indonesia is still small compared to Singapore, Thailand and South Korea. But I noticed that interest in increasing trade between Indonesia and Poland is growing.

Poland has sent two trade missions to Indonesia, which were headed by deputy ministers for foreign trade, Chaladaj and Czaja. On the part of Indonesia, two trade missions were sent to Poland in 1996. One was headed by then minister of mines and energy I.B. Sudjana and the other by Aburizal Bakrie, who is the chairman of the Indonesian Chamber of Commerce and Industry. Foreign minister Ali Alatas also made a visit to Poland in 1993.

Personally, I want to see more trade missions between the two countries. That way, we can expect both trade relations to expand in both directions.

I also want to see expansion of our relations in other fields, such as politics and culture improve (so that) in the near future we'll see more cultural performances from Indonesia in Poland and more cultural performances from Poland here.

Q: Can you quantify trade between Indonesia and Poland over the last two years?

A: It is still very small. Last year, trade between the two countries stood at around US$200 million. I expect it'll rise this year.

Q: How can it be further improved?

A: Well, there are still potential opportunities that can be tapped into to further improve trade relations. But I notice our problem is a lack of information about the two countries' potential. That's why I advocate frequent trade missions between the two countries.

Q: Is a lack of information really the problem? Perhaps the real problem is a lack of interest between businesspeople from the two countries?

A: I don't see it that way. I think if the business communities in both countries had enough information about the market potential of both countries, then they would become more interested in increasing trade. So the problem is how we can inform them of all the opportunities that exist.

Q: Why are you so keen to join the European Union?.

A: Yes, of course we're very keen. The accession to the Union is treated by Poland as a means of consolidating democracy and market economy. With the expansion efforts, we're seriously pursuing economic reform so that we can join the European Union. As you know, the Union has designed a number of conditions that prospective new members must meet before they can join it.

Q: When do you expect you will be able to join the Union.?

A: I don't want to mention an exact date, but we're in the process of joining now. When? I don't know yet. That depends on economic reforms and adjustments that we're now pursuing in Poland.

As you may notice, some sectors of our economy are still weak. These sectors include agriculture, heavy industries and services. We first need to strengthen them before joining the European Union. Early in November we've started negotiations with the Union. I hope the negotiations will be finished in the year 2002.

Q: What about NATO. Is it your intention to join NATO or are external factors imposing this upon you?

A: There are no external powers forcing us to join NATO. It is our own intention to join the organization as it will help to ensure our security and stability.

As you know, security is a must if a country is to successfully implement development programs. Without it, I don't think we would be able to develop our economy.

Last month, we signed a protocol for accession to NATO membership and we hope to become a full member next April.