RI, Libya ink deal to step up trade ties
Fabiola Desy Unidjaja, The Jakarta Post, Tripoli
Indonesia and Libya agreed on Saturday to enhance economic cooperation between them by finalizing a countertrade deal of crude oil for commodities and military accessories.
The deal was signed during a visit by President Megawati Soekarnoputri to Libya, whose economic prospects have received a major boost since the United Nations lifted earlier this month 15-year-old economic sanctions that had been slapped on the North African country.
"The deal covers 5,000 barrels of Libyan crude oil per day for our commodities such as building materials, textiles, furniture and military accessories," Minister of Industry and Trade Rini Soewandi said here on Saturday.
The crude oil was worth about US$40 million per month and would be delivered starting early next year, Rini added.
In exchange, she said, Libya would buy military accessories, including shoes, caps and belts, from Indonesia.
"They have also ordered three patrol boats from PT PAL Indonesia, and are giving consideration to buying a Puma helicopter, NBO helicopter and also a CN-235 airplane from us," the minister said.
Indonesia owns aircraft maker PT IPTN in Bandung, and shipbuilder PT PAL in Surabaya.
Megawati is the second world leader after Spanish Prime Minister Jose Maria Arnaz to have visited Libya since the UN Security Council (UNSC) lifted its economic sanctions on the African country on Sept. 12.
The UNSC imposed economic sanctions on Libya after the bombing of U.S. Pan Am flight 103 over Lockerbie, Scotland, in 1988. A Libyan intelligence agent is serving a life sentence in a Scottish prison for the bombing, while a second was acquitted.
The move clears the way for initial Libyan payments of up to US$10 million per victim, or $2.7 billion in total, to the families of the 270 people killed in the attack.
Also on Saturday, the Mali president arrived in Tripoli to meet with Libyan leader Moammar Qaddafi.
Rini said that Libya had asked for Indonesia's assistance in the construction field as the country would boost development projects after the sanctions were scrapped.
"They want us to help them in property construction and are interested in making investment in some enterprises such as Petrokimia Gresik and also in tourism," she said.
Megawati received a warm welcome from Qaddafi at a reception tent located in the compound of the Syuhada monument, at the Libyan leader's house, bombarded by the U.S. in 1989.
Megawati was given a chance to see the house, which has been left in the state it was after the U.S. attack, before a full military ceremony to greet her in front of the guest reception tent.
Qaddafi also hosted a dinner for all the delegation members from both Indonesia and Mali at the reception hall, located near the tent, and entertained them with a variety of performances from local artistes.
Megawati, wearing a purple dress, and Qadaffi later held a closed-door meeting at the hotel where the Indonesian President was staying. It was unprecedented for Qaddafi to visit a guest outside his residence compound.
Relations between the two countries date back to the 1950s when founding President Sukarno, Megawati's father, visited Tripoli. Last year Indonesia opened an embassy in Tripoli, separate from the Indonesian Embassy in Tunis.
The visit to Tripoli was also marked by some confusion, as the Libyan government repeatedly made changes to the schedule of events to be attended by Megawati.
She flew back to Jakarta later on Saturday and is slated to arrive in Jakarta at noon on Sunday after a stopover in Dubai.