RI vows to reduce trade deficit with L. America
RI vows to reduce trade deficit with L. America
By Riyadi
BUENOS AIRES (JP): Indonesia started its one-week economic
mission to Latin America here on Thursday with pledges to improve
its economic presence and reduce its continuing trade deficit
with Argentina and other countries in the region.
"We want to see our bilateral trade to be balanced," Minister
of Industry and Trade Tunky Ariwibowo, who led the mission,
announced after opening an Argentina-Indonesia business forum
here.
Tunky noted that two-way trade between Indonesia and Argentina
is still relatively small but growing steadily at a rate of some
20 percent per annum. The two-way trade, for example, increased
from US$24.59 million in 1983 to $117.07 million in 1990, $135.45
million in 1993 and $272.8 million last year.
Indonesia, however, has suffered a trade deficit in its trade
with Argentina since 1983, varying from $22.28 million in 1983 to
$114.9 million in 1990, $78.66 million in 1993 and $177 million
last year.
Tunky said that Indonesia has a lot more to offer to Argentina
to reduce the trade deficit, including textiles and textile-
related products, footwear, household electronic appliances and
computer hardware.
"The potency is there and the government has paved the way for
the private sector to trade more with this country. Now it's up
to the private sector to capitalize on the improving relations
between Indonesia and Argentina," Tunky said.
The Tunky-led mission to Buenos Aires is a follow-up to
Argentine President Carlos Saul Menem's recent official visit to
Jakarta to cement economic relations between the two countries.
The current economic mission, which will proceed to Brazil and
Mexico, comprises senior officials, leading manufacturers,
exporters, investors and executives of the Indonesian Chamber of
Commerce and Industry (Kadin).
At Thursday's business forum, executives of the Argentine
Chamber of Commerce and Kadin signed agreements on fostering
economic ties between the two parties.
Earlier in the morning, Tunky and a number of Indonesian
businesspeople, including Aburizal Bakrie, Rudy J. Pesik and
Poppy Dharsono, met with Menem at the presidential residence.
The secretary-general of the Argentine presidency, Alberto
Kohan, told a press conference that the talk was focused on
economic issues, including investment, possible joint ventures in
telecommunications and bilateral trade.
"We have a big hope for better cooperation in the future, not
only in trade and investment but also in other areas for closer
friendship between the two countries," Kohan said.
On the same occasion, Tunky noted that Indonesia is interested
in importing meat from Argentina, in addition to wheat and corn,
as well as capital goods. On the other hand, Indonesia is
offering Argentina a number of industrial products, including
aircraft.
Countertrade
He said Indonesia and Argentina are now sounding out
possibilities of conducting countertrade for Indonesia's
aircraft, especially the newest N250 turboprop planes, with
Argentina's farm produce.
"Indonesia and Argentina are both developing countries with a
high economic growth policy based on market economy. I think
Indonesia and Argentina have plenty of room for economic
cooperation, and for this reason I'm here to promote better
relations in the future," Tunky said.
Meanwhile, Aburizal, who is chairman of Kadin, said that
although the two countries are developing ones, they can
complement each other.
He said that Indonesia is also offering Argentina advanced
technology on a rural telephone system, which can cut investment
costs by up to one-sixth of a conventional telephone system.
"At the first stage, we would like to export the technology
to Argentina, and after that we would like to form joint ventures
here," Aburizal said.
Aburizal said Argentina, as leader in the Southern American
economic grouping of Mercosur, promises better access for
Indonesian products for markets in Latin America.
Argentina, covering a 2.8 million square kilometer area in the
southern part of South America, is the second largest country in
the region with a per capita income of over $8,000. "Argentina is
the richest country in Latin America," he said.