RI and Thailand discuss exchange of aircraft, rice
RI and Thailand discuss exchange of aircraft, rice
JAKARTA (JP): Indonesia and Thailand are negotiating a
countertrade deal, under which Indonesia is likely to exchange
two of its locally-manufactured aircraft for Thai rice and
glutinous rice.
Coordinating Minister for Production and Distribution Hartarto
announced yesterday that negotiations, currently still underway,
are expected to be completed by the time Thai Prime Minister
Banharn Silpa-Archa arrives in Indonesia.
"If things go well, hopefully we can see the signing of the
agreement taking place during the visit of Thai Prime Minister
Banharn Silpa-Archa," Hartarto said.
He added that he would be conducting negotiations with the
Thais yesterday afternoon and today. He refused to disclose the
type of aircraft Indonesia will offer to Thailand.
Indonesian aircraft are manufactured by PT Industri Pesawat
Terbang Nusantara (IPTN), a state-owned firm overseen by the
Agency for the Supervision of Strategic Industries.
Hartarto said Indonesia currently has to import some 70,000
tons of glutinous rice, which is mainly used to make traditional
cakes and alcoholic beverages.
Reports on countertrade between Indonesia and Thailand emerged
last week when Chairman of the State Logistics Agency Beddu Amang
confirmed that Indonesia might offer aircraft in exchange for
Thai rice and sugar.
Minister of Agriculture Sjarifudin Baharsjah, after meeting
here yesterday with the Thai Minister of Agriculture and
Cooperatives Suwit Khunkitti, refused to comment on the issue,
saying that it was for Hartarto to discuss.
He did say, however, that the planned countertrade with
Thailand will not involve sugar because Thailand has already
committed its production to the futures market.
However, he said there will most likely be joint ventures with
Thailand for investments in sugar mills, which will help
Indonesia's sugar industry.
The government decided earlier this year to gradually close
down small and obsolete sugar mills in Java for efficiency
reasons. To prevent price escalations, new mills will be built
outside Java.
Last year, Indonesia was estimated to have imported some
400,000 tons of sugar to offset the demand which reached 2.6
million tons.
Cooperation
Khunkitti and Sjarifudin yesterday met for the third
ministerial meeting on agricultural cooperation. During the two-
day meeting which ended yesterday, both ministers agreed on a
concrete action plan on cooperation to develop the food crop,
horticulture, fishery and livestock sectors.
The ministers yesterday also signed agreements to develop and
implement orchard management and on-farm training projects in
West Java, as well as a medical plant garden in Bangkhen,
Thailand.
In the fishery sector, areas of cooperation will include joint
research on the breeding of marine and pelagic fish and on the
utilization of fish aggregation devices in tuna purse seining;
technical cooperation on pond construction for brackish water;
processing of fish products; and joint ventures on fish meal
processing, cold storage canneries and shrimp culture.
In the livestock sector, cooperation will include exchanging
expertise and information on buffaloes, tropical breeding,
vaccine production; joint research programs; trade and joint
investments; and the harmonization of animal quarantine
regulations. (rid/pwn)