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.