Russia seeks deals on commodities
Russia seeks deals on commodities
The Jakarta Post, Jakarta
Russia is offering cost-effective advanced technology to local
administrations and the private sector in Indonesia in return for
commodities countertrade deals.
The chief of the economics bureau at the Indonesian Embassy to
Russia, Berlian Helmy, told reporters here on Friday that Russia
had a high demand for palm oil, natural rubber, coffee, cocoa and
tea.
"At the moment, Russia is more interested in improving
the bilateral trade in non-oil and gas commodities through
countertrade rather than considering investing in Indonesia," he
said.
Berlian was speaking during a press conference on the results
of a week-long visit by a Russian investment mission to a number
of local administrations.
The mission includes Russian firms specializing in the fields
of alternative power generation, clean water, laser and satellite
technology.
He said Indonesia's trade with Russia stood at nearly US$500
million in 2003, a huge improvement from the previous year's $200
million.
Indonesia's trade with Russia had suffered due to a lack of
direct land, sea or air connections, Berlian said.
"Russia actually offered a route through Central Asia, but
Indonesia did not give any response. Instead, Malaysia took
advantage of the move," he said, adding that Indonesia should be
more aggressive.
"Over the past few years, Malaysia has been the major exporter
enjoying a high demand for palm oil and natural rubber. Indonesia
could have been the major supplier of these commodities instead
of Malaysia," he said.
In return for commodities countertrade deals, Russia was
offering its advanced technology, which he said was more cost-
effective and suitable for Indonesia than the technologies
produced by Western countries.
"During a recent visit to East Kalimantan, we saw a number of
local power generators using Western technology. We found out
that the technology was similar to what the Russians have to
offer except that the Russian technology is up to 40 percent more
cost effective," Berlian said.
He added that the mission was satisfied with the responses it
had received from the local administrations visited during the
week-long tour, and expected to receive binding commitments from
Indonesia after it arrived back in Moscow.
The Russian firms participating in the mission include
alternative energy firm ADD Engineering, coal-based electrical
engineering firm MMPP Salut Co., natural resources monitoring
system provider JSC Geovision, water purification technology firm
Aquamin, telemedicine technology provider JSC Vitanet, laser
technology firm JSC Altect Co., and vibrosystem impact technology
firm Geoneftegas.