South Australia has keen interest in AIDA

JAKARTA (JP): The South Australian government has a keen interest in tapping trade and investment opportunities arising from the Australia-Indonesia Development Area (AIDA).

South Australia's Premier and Minister for State Development, John Olsen, said yesterday his government would seek closer links with Indonesia through AIDA, which connects Indonesia's eastern provinces with Australia.

"After all we are close neighbors ... We, in Australia, want to remain a long term friend and build a long-term business relationship with you," Olsen said.

To encourage AIDA business activity, Olsen said the South Australian and Northern Territory governments had agreed to spearhead efforts to set up rail links between their capital cities, Darwin in the North and Adelaide in the South.

AIDA was set up on Oct. 25 last year so Australia could contribute to Indonesia's developing eastern provinces.

"The Northern Territory and South Australia governments have formed a corporation. That corporation will be seeking international financial interests within the next three months," Olsen said.

The two governments had committed to contributing A$100 million each, the Port of Darwin A$90 million and other agencies A$300 million, he said.

The planned railway link is expected to increase trade between South Australia and the Northern Territory and ultimately increase trade with Indonesia's eastern provinces,

Next week, Indonesia and Australia will hold their first AIDA ministerial meeting. It will be in Ambon, Maluku.

A special AIDA working group, comprising private sector representatives from both countries, has recommended tourism, agriculture, fishing and animal husbandry, mining and energy (including the Timor Gap project), education and training, and transportation be prioritized for cooperation.

"Next week, our ministers will be here to take further steps forward into our business relationship, between Australia and east Indonesia," Olsen said.

There has been growth in overall bilateral trade, with Australia's exports to Indonesia increasing from A$1.6 billion in 1991/1992 to A$2.8 billion in 1995/1996.

Australia's imports rose from A$1 billion to A$1.5 billion over this period.

Olsen is here on a two-day trade mission with executives from 27 South Australian firms.

Yesterday, Olsen met the Coordinating Minister for Production and Distribution, Hartarto, and the Minister of Industry and Trade, Tunky Ariwibowo.

Today Olsen and his entourage go to Bandung, West Java.

Olsen said his government, together with the Northern Territory, had set up a link with the BIMP-EAGA subregional economic zone. BIMP-EAGA links Indonesia, Brunei, Malaysia and the Philippines. (rid)