Indonesian Political, Business & Finance News

RI, Finland to promote cooperation

RI, Finland to promote cooperation

JAKARTA (JP): President Soeharto and Finnish President Martti
Ahtisaari agreed yesterday to improve ties and further promote
economic activity between Indonesia and Finland.

During a meeting at Merdeka Palace yesterday, the two-
presidents agreed to increase economic cooperation and improve
upon the marginal value of two-way trade which currently stands
at about US$300 million.

The Finnish President arrived here on Wednesday for a three-
day state visit, the first overseas trip he has made outside
Europe since assuming the presidency.

He leaves Indonesia this morning to continue his journey to
Bangkok.

Minister/State Secretary Moerdiono said that Indonesia wanted
to improve its balance of trade which at present heavily favors
Finland. Indonesia currently bears a deficit of some $180 million
in relation to the Scandinavian country.

He said one of the issues which was discussed further during a
parallel meeting between ministers of the two countries was that
of the high tariff on Indonesian plywood entering Finland.

On the political side, Moerdiono said that Soeharto had
explained the integration of East Timor into Indonesia to
Ahtisaari.

During the meeting, President Soeharto called on Finland to
participate in the trilateral financing mechanism which promotes
South-South development cooperation through third country
financing.

Indonesia, as chair of the 111-nation Non-Aligned Movement,
has been advocating such a financing mechanism to help the
development of the Third World countries.

This point was touched upon again by Soeharto during the
evening's state dinner when he said "we hope that Finland will
actively participate in the Movement's efforts to promote
economic cooperation."

Earlier in the afternoon President Ahtisaari attended the
inauguration of the Finland-Indonesia Business Council, which was
held by the Indonesian Chamber of Commerce and Industry, the
Finnish Embassy and several Finnish business groups already
active in Indonesia or the region.

Three Indonesian cabinet ministers who attended the ceremony
were Coordinating Minister for Industry and Trade Hartarto,
Minister of Trade Satrio B. Joedono and Minister of Forestry
Djamaludin Suryohadikusumo.

The Finland-Indonesia Business Council appointed Sukanto
Tanoto, the president of Raja Garuda Mas Group, as its chairman.

The ceremony was attended by various executives of Indonesian
firms, most notably those in the pulp and paper and the timber
industries. These included Eka Tjipta Widjaja of the Sinar Mas
Group and Joso Gautama of the Barito Pacific Timber Group.
(hdj/mds)

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