RI-Australia trade volume to reach US$10b by 2000
JAKARTA (JP): Australian Prime Minister John Howard expressed optimism here yesterday that Indonesia and Australia could double annual two-way trade to about US$10 billion by 2000, as economic cooperation is growing rapidly.
"Economically, Australia and Indonesia are complementary in many respects. The changes in our economies are making each a better partner of the other," Howard noted in his keynote speech at a business luncheon hosted by the Indonesian Chamber of Commerce and Industry, and the Indonesia-Australia Business Council at the Grand Hyatt here.
Statistics show that Australian exports to Indonesia grew by over 30 percent in 1995-1996, while Indonesia's exports to Australia rose by 27 percent.
Indonesia saw its trade deficit with Australia increase from US$1.1 billion in 1994 to $1.4 billion last year. In 1995, Indonesia's exports to Australia stood at only US$0.4 billion, while imports amounted to $1.8 billion.
Trade between the two countries has grown in a number of areas, including processed food, telecommunications hardware, computer software, construction material, infrastructure items and medical equipment.
Howard said that 300 Australian companies are currently operating in Indonesia. Last year, the government approved about $4.5 billion in new investment proposals by Australian companies.
He recognized that strategic and economic links with Asia are vital to Australia, and said Australia has particularly high expectations of the relationship with Indonesia.
"My government is determined to put Australia's economy in shape to capitalize on the benefits of being part of a region with the fastest-growing and most competitive economies in the world. And our relationship with Indonesia is a key part of our efforts in this regard."
Meanwhile, Minister/State Secretary Moerdiono, who accompanied President Soeharto on his tete-a-tete with Howard at Merdeka Palace here early yesterday, said that Soeharto urged Australia to purchase planes from the state-owned aircraft company PT Industri Pesawat Terbang Nusantara (IPTN).
Moerdiono said that Indonesia is willing to buy Australian wheat, livestock and meat products.
He said that in response to Soeharto's offer, Howard said the airplane offer would be considered "in accordance with the other proposals" but would not be given preferential treatment.
Moerdiono also said that in yesterday's talks, Soeharto and Howard discussed the forthcoming meeting of the Asia Pacific Economic Cooperation (APEC) forum in Subic, the Philippines.
"Both of them expressed their hope that APEC's members will bring more concrete action plans to the next meeting," Moerdiono added.
In the afternoon, Howard inaugurated the Australian airline Ansett's Jakarta office.
Ansett is planning to increase the number of flights between Australia, Indonesia, and Malaysia by six flights per week, a frequency increase of approximately a third.
On Oct. 27, it will launch the first non-stop flight between Jakarta and Melbourne, scheduled three times a week, additional flights between Jakarta and Sydney, between Jakarta and Kuala Lumpur, and between Denpasar and Darwin.
The inauguration was also attended by Minister of Tourism, Post and Telecommunications Joop Ave and Australian Ambassador Alan Taylor. (alo)