RI, Brazil likely to boost bilateral trade relations

JAKARTA (JP): Indonesia and Brazil have the potential to expand their economic relations despite a sharp decline in bilateral trade several years ago, chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Aburizal Bakrie said here on Tuesday.

Speaking after a seminar on trade opportunities with Brazil, the trade organization's chairman said that both countries had much to offer in order to boost future trade.

He suggested that Brazil could import crude palm oil, rubber, as well as footwear and textile-related products from Indonesia.

According to Ical, as Aburizal is more commonly known, such Indonesian products are not only of a higher quality, but are also cheaper than those from other countries.

He said that Indonesia, on the other hand, could import iron ore and steel products from Brazil to meet the need of the local steel industry.

"Indonesia could, for example, import cheap steel and iron ore from Brazil," he said on the sidelines of the seminar, which was also attended by a Brazilian trade delegation.

The 80-member trade mission is part of the delegation accompanying Brazil's President Fernando Henrique Cardoso who arrived in Jakarta late on Monday for a two-day visit.

Ical said the trade volume of the two countries peaked at US$608 million in 1997 before plunging to $378 million in 1998. Over the past two years it has slightly recovered to $493 million in 1999 and about $530 million last year.

"Based on that trend of recovery, we expect that the two way trade will increase by 15 percent to about US$575 million this year," he said.

Mario Vilalva, the director general of Brazil's trade promotion department, said that he expected the country's trade mission could help promote bilateral trade to at least the level recorded in 1997.

He said that Indonesia is one of Brazil's most important trading partners in Asia, which contributes approximately $14.9 billion to the country's total foreign trade.

Brazil's imports from Indonesia reached a total of $249 million in 2000, slightly more than half the total trading volume of $468 million during the year, he said.

Brazil imports various products from Indonesia including electrical goods, machinery, filaments, rubber products, cocoa, animal or vegetable oils, and mineral fuels.

Indonesia imports tobacco, cars, sugar, wood pulp, ores and transportation equipment. (03)