Riau 'entitled' to direct trade with Malaysia, S'pore

JAKARTA (JP): Riau's new status will enable the province to trade directly with Malaysia and Singapore, a researcher said on Tuesday.

Alfitra Salam of the National Institute of Science in Pekanbaru, the capital of Riau, told Antara the new Law on Regional Autonomy, endorsed by the House of Representatives last week, allows a province to form relationships with foreign countries without central government approval.

Since July 1997, Riau and Malaysia have held trade discussions but have been unable to form agreements due to Jakarta's objection.

"People living in Sumatra coastal areas were wealthy during the ancient regime thanks to their direct business with foreign partners. The situation changed after Malaysia and Indonesia gained independence, because so far, no joint border treaty covers Riau and Malaysia," Alfitra said.

Indonesia and Malaysia signed a joint border treaty only for trade in Serawak in Malaysia and West and East Kalimantan. Another treaty is expected to cover Riau waters and Tanah Semenanjung in Malaysia.

Alfitra said that in comparison to domestic business revenue, foreign trade would have benefited locals from Riau considerably, not only because of the trading proximity, but because Malaysian partners offered higher prices.

Alfitra said the treaty should not restrict people's movement, but control the traffic of goods in order to help people improve their standard of living.

"In the past, Riau people used to do business in Malaysia and Singapore, selling rubber, coconuts, vegetables, fish, shrimps or pandanus mats in exchange for staple food and essentials.

"They did not need passports then. Now many of them have to do their old business secretly because they do not hold passports."

Alfitra said direct trade between Riau and Malaysia and Singapore was necessary for Indonesia to prepare itself for the Asia Pacific Free Trade Area (AFTA). AFTA officially begins in 2003.

Separately, the province's Deputy Governor in charge of Administrative Affairs and People's Welfare, Rustam Abrus, said despite the fact there had been no joint border treaty signed with Malaysia, Riau had listed 14 districts along the border as free trade traffic lanes.

They include Kubu, Bangko, Rupat, Bantan, Rangsang, Kuala Kampar, Senayang, Jemaja, Bunguran Barat, Bunguran Timur, Karimun, Moro, Bintan and Belakang Padang districts.

"We hope the government approves our direct foreign trade plan, because we want to help people improve their standard of living," Rustam said. (amd)