Private sector's absence from G-15 expo lamented
Private sector's absence from G-15 expo lamented
By Meidyatama Suryodiningrat
BUENOS AIRES (JP): Minister of Foreign Affairs Ali Alatas
lamented yesterday the absence of the Indonesian private sector
in the business expo and forum being held here in conjunction
with the fifth summit of the group of 15 (G-15) developing
nations.
"I regret the fact that for one reason or another our
businesses did not attend the forum," Alatas said.
Some 500 executives from G-15 member states attended the two-
day business forum held at the Palais de Glace exhibition center
here.
Only one Indonesian businessman attended the business meeting.
The absence of the Indonesian private sector is seen as a
missed chance not only to bolster the nominal trade between
Indonesia and Argentina, but also to implement the often sounded
need for stronger cooperation among developing countries in the
South.
"There have been 441 meetings and contracts occurring during
the business forum, which was unfortunately not participated in
by Indonesia," Alatas remarked.
The presence of just a single Indonesian businessman among the
500 participants revealed a weakness in the government's efforts
to promote cooperation among developing countries through trade
and investment.
The G-15 was established in 1989 as a forum for heads of state
and government to discuss the global economic situation, forge
South-South cooperation and rejuvenate dialog between the South
and industrial nations of the North.
The group is comprised of Algeria, Argentina, Brazil, Chile,
Egypt, India, Indonesia, Jamaica, Malaysia, Mexico, Nigeria,
Peru, Senegal, Venezuela and Zimbabwe.
Malaysian business representatives were heavily active at the
business forum, with, according to Indonesian Ambassador to
Argentina Aswin Darwis, 25 percent of the contracts and meetings
here involving them.
Earlier Alatas and his Argentinean counterpart Guido Di Tella
signed an investment guarantee agreement to boost investment
cooperation between the two countries.
Alatas told reporters that the Indonesian agreement will not
only promote trade links but also, more specifically, investment.
Joint ventures
"What we hope for now is not just an increase in trade but
also the establishment of joint ventures," he said.
According to official statistics, thus far there has been no
investment cooperation between the two countries, while
Argentina's exports to Indonesia last year stood at US$45.2
million and its imports from Indonesia at $110 million.
"This really means nothing to Argentina and Indonesia," Alatas
said, commenting on the volume of trade. "We should increase the
trade to at least half a billion dollars," he added.
Footwear makes up much of the Indonesian goods exported here,
while wheat, leather, pulp and oil seeds are exported by
Argentina to Indonesia.
"We still don't know our individual potential," Alatas said of
the nominal trade.
With little hindrance in the terms of tariff and non-tariff
barriers, the lack of direct sea and air links between the two
countries may be one of the main problems facing the private
sector.
Combined with the geographic distance separating the two
countries, high transportation costs are also hindering private
sector businesses from focusing more on this area of the world.