RI, Algerian business groups aim to boost trade

RI, Algerian business groups 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 country.

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

"Our exports to that country are 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 explained to The Jakarta Post.

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

Indonesia's export performance has been weakening for 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 exports higher, which is a
crucial factor in creating greater 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 networks 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 discrimination 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 can be
given depending on the importance of the investment. In this
case, investors can request directly from the government".