RI urged to boost exports to Australia
RI urged to boost exports to Australia
JAKARTA (JP): Indonesia should be more active in seeking export opportunities to Australia to reduce its continuing lop- side trade imbalance with its southerly neighbor, a veteran diplomat believes.
Indonesia's former ambassador to Australia Sabam Siagian yesterday blames the ineptness of local businessmen and Australia's rigid standard requirements of imports for the lop- sided trade.
"The interests of Indonesian companies (in Australia) are growing very slowly," Sabam said after being inducted as chairman of the Indonesia-Australia Business Council, replacing Moetaryanto.
According to Australia's official data, bilateral trade between Indonesia and Australia totaled A$3.8 billion (US2.99 billion) last year, with Indonesia suffering a deficit of A$1 billion.
Indonesia's total exports to Australia increased by 30 percent to A$1.4 billion last year from A$1.1 billion in 1994, while its imports grew by 21 percent to A$2.4 billion from A$2.19 billion.
Last year's two-way trade figure represented an increase of 15.5 percent from the previous year's A$3.29 billion.
Sabam noted that Indonesia can no longer rely on the export of traditional products such as textiles, garments and footware because their exports to Australia meet tough competition from countries with lower labor costs like Vietnam and Bangladesh.
Because Indonesia has few choices but to export garments and footware, Sabam suggested that the country move toward higher- valued products in its exports.
He also suggested that Indonesia look for new commodities to export to Australia.
"Australia has been exporting a lot of fruit to Indonesia. And in return, we want our fruit to enter Australia as we have many kinds of fruit to offer. I think our mangoes from East Java are among the best mangoes in the world," Sabam said.
Sabam criticized Australia's quarantine policy on imported food because its implementation sometimes blocks the entrance of Indonesian produce.
He suggested that Australia send a quarantine educational team to Indonesia to examine the problems here so that Indonesia's farm products can enter Australia more easily.
"If farm products from our neighboring countries like Vietnam can enter Australia, why can't our products," he asked.
To forge even closer economic ties between the two countries, Sabam suggested that business people from both countries expand their investment cooperation.
He said many large corporations in Australia still consider Indonesia as insignificant in their business expansion plans because they are better acquainted with North American and European markets.
"If we can attract them here, Australia's small and medium enterprises will be brought along," Sabam said.
Apart from trade and investment, Sabam suggested that the two countries increase cooperation on services, especially in the aviation, tourism and legal sectors. (rid)
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