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".