RI, Thailand can promote business ties

JAKARTA (JP): The potential for Indonesia and Thailand to cooperate in the fields of investment and trade is still great, especially since the economies of the two countries are similar in nature, say economic observers.

Farid Harianto, an economic observer, said here yesterday that agribusiness could be the most appropriate field of cooperation, given the different stages of the agricultural development in the two countries.

Thailand's agribusiness earnings are an important source of foreign exchange. But because it faces a scarcity of land, it should consider beginning similar industries in land-rich Indonesia, he said.

"Such an arrangement would be mutually beneficial. Thailand would be able to further capitalize on its success while Indonesia could benefit from its agribusiness expertise," he said in a seminar on Indonesian-Thai business relations.

The seminar, jointly sponsored by the Center for Strategic and International Studies (CSIS), the Thai embassy and the Indonesian-Thai Business Council, also featured such speakers as Thai ambassador Kasit Piromya, Mari Pangestu of CSIS, Husain Djoyonegoro, president of PT International Chemical Industrial Co., Siroj Angsuvat, managing director of Ban-Pu International Ltd and Ridwan Gunawan, vice president of PT Federal Motor.

Farid said that other fields of future cooperation could be in sectors related to the development of light industries.

"Such cooperation would not necessarily be in the form of the promotion of trade or investment in such sectors but in the fusion of policies to develop such businesses," he said, adding that Indonesia could adopt the strategy of the Thai government in developing its electronics industry into a important player in Indonesia's economy.

Ridwan of Federal Motor said business cooperation amongst affiliates of multinational firms in the two countries would also facilitate the winning of export contracts.

Cooperation between Astra International, Indonesia's largest automotive company, and its Thai counterpart could, for example, strengthen the competitive edge of each firm.

"Subcontracting the production of car components to Thai automotive producers could be less costly if the production of such components at home is not efficient enough," he said.

Ambassador Piromya said that Indonesia and Thailand also need to cooperate in the fields of technology and investment.

He said that Thailand could benefit from Indonesia's leading technology in the fields of satellites, aviation, chemical industries and steel.

On the other hand, Indonesia could also take advantage of Thailand's more developed service industries and its production of agricultural machinery, he said. (hen)