Indonesian Political, Business & Finance News

RI and Hungary discuss the new world order

RI and Hungary discuss the new world order

JAKARTA (JP): Indonesia and Hungary discussed yesterday the need for regional organizations to maintain an open outlook to help create a stable new world order.

The issue was tabled during a meeting between Indonesian foreign minister Ali Alatas and his visiting Hungarian counterpart Laszlo Kovacs.

"We spoke and exchanged views on the new world order which is emerging...We agreed that this new world order could be established by cooperation and outward looking regions," Kovacs told journalists after the meeting.

He said that he had exchanged views with Alatas on European and Asian cooperation.

Kovacs arrived on Monday for a four-day visit under the invitation of his Indonesian counterpart. He is accompanied by chief secretary Gabor Brody and deputy director for Asia-Pacific affairs Andras Dallos.

Similarly, Alatas noted that regionalism was developing into an important geo-political factor.

"We both agreed that in the future the role of regional and sub-regional organizations will become increasingly important for the maintenance of world peace and stability," he said.

Nevertheless, he warned against transforming these organizations into uncompromising groups with protectionist tendencies.

"I stated that in the economic field we have to make sure that these regional organizations do not become merely inward-looking or even drift into protectionism," said Alatas.

Indonesia is a key player in two key regional groups -- the Asia Pacific Economic Cooperation (APEC) forum and the Association of Southeast Asian nations (ASEAN).

Other topics touched upon by the two foreign ministers were the conflict in the former Yugoslav republic of Bosnia- Herzegovina and the upcoming Asia-Europe Meeting in Bangkok next month.

On the bilateral front, both foreign ministers expressed a desire to further upgrade economic relations.

"After successfully consolidating themselves economically, they now wish to expand their relations in Asia...of course we welcome this," Alatas remarked, adding that it was now a matter of implementation.

He noted the importance of looking at Hungary in terms of the regional market surrounding the country.

Alatas underlined the need to improve two-way trade which hovers at only around US$50 million a year. "This is far below our potential," he said.

One of the likely aspects for enhanced cooperation will be the transportation sector.

Kovacs said his country would like to participate more in this sector through joint ventures in the production of lorries and trucks.

Indonesia is set to buy 40 Hungarian-made buses for public transportation and an additional 100 are in the pipeline. The possibility of intercity trains is also being discussed.

More talks on trade relations will be held when Kovacs meets with Minister of Research and Technology B.J. Habibie and Minister of National Development Planning Ginandjar Kartasasmita today.

The Hungarian minister is also scheduled to pay a courtesy call on President Soeharto this morning. (mds)

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