RI, Algerian business groupings aim to boost trade

RI, Algerian business groupings aim to boost trade

Sari P. Setiogi
The Jakarta Post
Jakarta

The Indonesian Chamber of Commerce and Industry (Kadin) and
the Algerian Chamber of Commerce and Industry pledged to help
push trade and investment activities between the two countries.

Officials from the two sides held a meeting on Tuesday, and
later in the evening the two sides were expected to sign a
Memorandum of Understanding (MoU) to help realize that goal.

Head of international trade development at Kadin Rahmad
Pribadi urged local businesses to export more products to
Algeria, taking advantage of the brisk economic development in
the latter country.

He said that Indonesian businesses could export more consumer
goods, food and beverages, textiles, wood products, and building
materials to Algeria.

"Our export to that country is still relatively small, while
the potential is actually very high. We even suffer a (trade)
deficit since our import (from Algeria) is higher than export,"
he told The Jakarta Post.

Indonesian export to Algeria reached US$40 million in 2002,
while import from that country totaled $450 million. Indonesia
among others imports petroleum and phosphate products from
Algeria.

Indonesia's export performance has been weakening during the
past couple of years due to a number of problems including the
economic slowdown in major export markets of the U.S. and Japan.

The government has been pushing local exporters to seek
alternative markets to help push export higher, which is a
crucial factor to create a higher economic growth.

Meanwhile, visiting chairman of Algerian Chamber of Commerce
and Industry Ali Harbour said that his country was now developing
various infrastructure projects such as highways, water storage
facilities, railway network, and housing facilities. He said
that Indonesian businesses could take advantage of these
opportunities.

The Algerian business delegate is here accompanying Algerian
President Abdelaziz Bouteflika on a four-day visit.

"We welcome Indonesian businessmen to enter Algeria. There is
no discriminations between local and foreign investors in
Algeria. The Algerian law on foreign investment even gives
facilities for investors on taxes, and on acquiring land," he
told the Post.

He also said it was possible for investors to have more
facilities than what was written in the law. "Facilities could be
given depending on the importance of the investment. In this
case, investors can request directly to the government".