Indonesian Political, Business & Finance News

RI, Uzbekistan committed to fostering closer economic ties

RI, Uzbekistan committed to fostering closer economic ties

JAKARTA (JP): Indonesia and Uzbekistan are taking concrete steps to foster closer economic ties by cooperating in the establishment of cotton yarning, palm oil and tea packaging ventures.

Following a meeting between Indonesia's President Soeharto and Uzbeki president Islam A. Karimov, the two agreed to explore the possibility of establishing of a yarn factory in Uzbekistan whose products would be exported to Indonesia, finished, and then re- exported back to Uzbekistan.

Speaking in the Uzbeki capital Tashkent, the two leaders also agreed to help promote the establishment of a palm oil and a tea packaging factory, the raw materials for which would be provided by Indonesia.

President Soeharto arrived in Uzbekistan on Saturday as part of a four-nation tour which includes Germany, Kazakhstan and Turkmenistan. He is scheduled to leave for Turkmenistan, the last leg of his tour, later today.

Indonesian Minister of Foreign Affairs Ali Alatas said in Tashkent on Saturday that Soeharto and Karimov had also signed a declaration on the boosting of friendship and cooperation.

A series of memoranda on tourism and air travel were signed at the ministerial level.

Uzbekistan broke away from the former Soviet Union and gained independence in 1991. It has a population of some 22 million people, the majority of whom are Moslems.

It is a country rich in natural resources and is one of the world's eight biggest producers of gold.

Alatas and Minister/State Secretary Moerdiono said that to promote economic cooperation both governments would set up a coordinating team. They said the Indonesian team would be headed by Coordinating Minister for Industry and Trade Hartarto.

According to the two ministers, other issues discussed during the state visit included foreign currency problems in paying accounts.

Indonesian trade with Uzbekistan was pioneered five-years ago by PT Prima Comexindo. The company has overcome the difficulties of account payments by forging counter-trade agreements, under which Indonesian tea is exported in return for Uzbeki cotton.

President Karimov admitted that there were several barriers to close cooperation, such as the long distance between the two countries.

Officials would, however, be assigned to work on the difficulties.

In his address at a dinner reception on Saturday evening, President Soeharto said that, despite the great distance separating the two countries, Uzbekistan was not alien to the Indonesian people.

He pointed to the famous Islamic figures from Uzbekistan, Imam Bukhori and Ismail Saman, with whom Indonesians are familiar.

Yesterday President Soeharto flew to the city of Samarkand, south of Tashkent, which is the site of Imam Bukhori's grave. It was Soeharto's second visit to the tomb of Imam Bukhori, the famous compiler of hadith, or sayings of the Prophet Muhammad. His first visit was in 1989.

Karimov praised Soeharto's leadership of the 111-nation Non- Aligned Movement. He said that as a result of Soeharto's leadership the group now commanded greater international respect. (mds)

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