RI and Australia agree to economic cooperation

RI and Australia agree to economic cooperation

JAKARTA (JP): Members of the Australia-Indonesia Development
Area (AIDA) business forum have agreed on a package of economic
cooperation to develop Indonesia's eastern provinces and the
Australian continent.

The agreement was reached Saturday at the forum's first
meeting in Mataram, West Nusa Tenggara. At the meeting, the
Australian delegation was led by John Dauth while that of
Indonesia was headed by Bachrum S. Harahap, a senior assistant to
the coordinating minister for production and distribution.

Iman Taufik, the vice chairman of the Indonesian Chamber of
Commerce and Industry said the forum's members agreed to
cooperate in tourism, agriculture, fishery, husbandry, mines
(including the exploitation of Timor Gap's oil reserve),
transportation, education and training.

The businesspeople said both countries had potential which had
not been fully realized, he said, adding that Australia, for
example, had technology, better human resources, management and
international market network, from which Indonesia could benefit.

"The main problem is that both countries have not yet
seriously promoted their potentials to each other," Iman was
quoted by Antara as saying.

In the past, Indonesia's eastern provinces and Australia had
difficulties promoting economic cooperation due to transportation
restraints.

"Now the problem has been solved with the opening of the
Darwin-Mataram flight path," he said.

Iman acknowledged there was a cultural gap between both
countries but said such a weakness could be solved if both
countries improved their mutual understanding.

"That is to say, the cultural difference should not interfere
with the cooperation we are building," he said.

Indonesia and Australia established the AIDA growth zone last
year after several official meetings since 1993.

Indonesia is also engaged in three subregional growth zones
within the Association of Southeast Asian Nations (ASEAN). One
growth zone covers southern Thailand, Indonesian provinces of
Aceh and North Sumatra, and Penang in Malaysia. Another zone
covers Singapore, the Malaysian state of Johor and Indonesia's
Riau province. The third zone covers the southern Philippines,
Brunei, the eastern Malaysian states of Sabah and Serawak and the
Indonesian provinces of Kalimantan and Sulawesi.

Iman said in order for the growth zone to succeed, Indonesia
needed to create an attractive business climate in its provinces
and revoke unsuitable local laws.

"Many local laws don't support investment," he said. "Many
investors cancel their investments once they arrive in the
provinces. The local laws still impede their investments even
though they have licenses from Jakarta," he said.

The government is currently proposing a bill on provincial
taxes as part of the government's commitment to eliminate levies
collected by the provincial administrations.

There are around 4,000 provincial laws and 300 district laws
in the country's 27 provinces at present. Most issued regulations
legalize the levies imposed by the provinces. (jsk)