RI to boost countertrade

RI to boost countertrade

Sari P. Setiogi
The Jakarta Post
Jakarta

Indonesia will boost its countertrade to expand the country's
export markets amid tighter global trade competition, Minister of
Industry and Trade Rini MS Soewandi said on Monday.

"We face relatively slow global economic growth and tighter
competition with other countries. Because of this, creativity and
innovation in opening new markets will be necessary," the
minister said in a speech read by the ministry's expert staff on
trade and industry resources, Ridwan Kurnaen, during a seminar.

She said countertrade was on the increase globally, with over
130 countries now doing almost US$500 billion worth of global
trade under countertrade schemes.

She said countertrade was effective in opening new export
markets or introducing new export products.

Rini said the government annually set aside a portion of the
budget to import equipment for the armed forces, police, the
customs office and other state offices. These purchases, the
minister said, could be made via countertrade.

While Rini did not provide any exact figures, Ridwan said the
government expected between 30 percent and 50 percent of imports
for its projects to be obtained through countertrade.

"We have signed memorandums of understanding with both Libya
and Pakistan. We can also do such trade with other countries that
lack foreign currency," he said.

Indonesia's total exports climbed 6.76 percent to US$61.02
billion in 2003, with non-oil and gas exports rising 5.18 percent
to $47.38 billion.

The rise in non-oil and gas exports was helped by an 8.09
percent increase in animal and plant oil exports to $2.91
million, the trade ministry's director general of international
trade, Sudar SA, said.

He noted that the significant rise in animal and plant oil
exports was partly the result of the export of $57.2 million in
crude palm oil to Russia as part of a countertrade deal that
allowed Indonesia to acquire military equipment from Russia.