Thailand offers Indonesia agribusiness cooperation

Thailand offers Indonesia agribusiness cooperation

JAKARTA (JP): Thai Prime Minister Banharn Silpa-archa
yesterday offered Indonesian companies cooperation in
agribusiness, one of Thailand's most rapidly growing export
industries.

Cooperation in the sector would further enhance the free trade
agreement between the Association of Southeast Asian Nations
(ASEAN) of which Indonesia and Thailand are members, Banharn told
a meeting with Indonesian business leaders, Antara reported.

Banharn said the potential for cooperation between the
countries is huge, and the ASEAN Free Trade Area (AFTA), which is
scheduled to come into force in 2003, would further expand the
markets.

Thai Minister of Agriculture and Cooperation Suwit Khunkitti,
according to Antara, pointed more specifically at processing
crude palm oil, rubber and horticulture as the particular
agribusiness sectors where cooperation between the countries
would be mutually beneficial.

Banharn arrived yesterday for a two-day visit, his first to
Indonesia since he was elected to head a seven-party coalition
government in July. Banharn and Soeharto have however met on
several occasions since then, including in Bangkok in December
during the ASEAN summit and last month during a summit meeting of
Asian and European leaders, also in the Thai capital.

The two leaders are scheduled to hold their formal meeting
today.

Minister/State Secretary Moerdiono said that the two leaders
are expected to discuss the prospect of conducting barter trade,
with Indonesia supplying locally-produced aircraft built by IPTN
in exchange for unspecified Thai products.

A memorandum of understanding on the counter-trade arrangement
is also expected to be signed today.

Moerdiono said that during their brief meeting shortly after
the state welcoming ceremony at Merdeka Palace, Soeharto and
Banharn also underlined the need for ASEAN to expand to include
all the 10 Southeast Asian countries.

ASEAN, founded in 1967, comprises Brunei, Indonesia, Malaysia,
the Philippines, Singapore, Thailand and Vietnam. The other three
countries in the region not included are Cambodia, Laos and
Myanmar.

Banharn is also scheduled to make a brief trip to Yogyakarta
to visit the ancient Borobudur temple, the largest Buddhist
temple in the world. The Thai prime minister and his entourage
will also conduct a Buddhist prayer session at Candi Mendut, a
temple near Borobudur, before returning home later in the
afternoon. (emb)