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.