RI to reopen trade centers in Sydney, LA and Dubai

JAKARTA (JP): Indonesia will reopen three export promotion offices in Sydney, Los Angeles and Dubai, the capital of the United of Arab Emirates, in June this year, a senior trade official said here on Tuesday.

Gusmardi Bustami, chairman of the National Agency for Export Development, said that the three trade offices were among the country's 13 overseas trade centers closed in early 1998.

He said that the Osaka-based trade promotion center had become the first to resume operation when the center was reopened in December last year.

"The reopening of the trade centers is in line with the government's program to boost non-oil and gas exports," he said.

Indonesia's non-oil and gas exports were expected to increase to $53 billion next year from about $50 billion in 2000.

Gusmardi said Los Angeles had been chosen as the first center to be reopened due to its important role as a gateway for Indonesian exports to the West Coast of the United States.

"Los Angeles can also serve as our main gateway to other neighboring countries such as Mexico and Canada," he added.

The trade center in Dubai would be reopened because it served as a transit point for Indonesian exports to the Middle East, he said, adding that about 60 percent of exports to the Middle East were shipped through Dubai.

Indonesia receives approximately $800 million in export earnings from Dubai annually .

He said that Indonesia had decided to reopen its trade office in Sydney to further boost exports to neighboring country Australia.

According to Gusmardi, the government requires at least Rp 3 billion to run an overseas trade center.

The agency formerly owned 13 trade centers located in Dallas, Los Angeles, New York, Mexico City, Hamburg, London, Rotterdam, Budapest, Baghdad, Dubai, Jeddah, Osaka and Sydney. However, all branches were closed in July 1998, as a result of belt-tightening measures implemented to cope with the economic crisis.(03)