'Trade ties with China to be promoted further'

JAKARTA (JP): President Soeharto yesterday called on Indonesian and Chinese businessmen to further promote trade relationships between the two countries.

The President said this during a courtesy visit from a Chinese trade delegation headed by the vice chairman of the Standing Committee of China's National People's Congress, Wang Guangying.

Wang, who is also the chairman of the China-Indonesia Association, said his delegation would meet Indonesian businessmen during their stay here.

The delegation, which comprises members of the All China Industry and Trade Federation, was accompanied by the chairman of the Indonesia-China Association, Sukamdani S. Gitosardjono, and the association's supervisor, Soedono Salim, at yesterday's meeting with Soeharto.

Trade relations between Indonesia and China have been growing since a bilateral trade agreement was signed in 1985, five years before the two nations restored diplomatic ties in 1990 after a 23-year break.

According to Sukamdani, two-way trade between China and Indonesia increased to US$3.23 billion in 1995 from $232 million in 1984. Since 1984, Indonesia has recorded trade surpluses with China. It recorded a trade surplus of $236 million in 1995.

Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Aburizal Bakrie said at a luncheon meeting between the Chinese delegation and the chamber here yesterday that the two countries could further promote trade ties in the food, agricultural produce, capital goods, banking, insurance, transportation and telecommunications industries.

He said the trade of capital goods and agricultural produce may flourish because China produces many capital goods but lacks agricultural produce, while Indonesia lacks capital goods and has abundant agricultural produce.

Indonesia, Bakrie said, needs US$12.5 billion worth of capital goods each year.

Sukamdani said Indonesia was likely to have a trade deficit with China in future if it bought more capital goods from China, while selling only agricultural produce in return. To prevent a deficit, he said, Indonesia should promote the trade of other products.

Sukamdani criticized the government's policy yesterday which tightens visa regulations for Chinese traveling to Indonesia.

Gatra magazine has reported that the Indonesian embassy in China is scrutinizing the issuance of visas for visitors from China more closely for fear that they may end up living in Indonesia. The embassy is, for instance, obliging them to have sponsors in Indonesia to guarantee their return to China.

Sukamdani said it should be enough to require that Chinese visitors have return tickets and an adequate amount of cash for their tour.

According to Sukamdani, about two million Chinese travel overseas each year. Half of them go to Southeast Asian countries.

Sukamdani also reiterated his call for the People's Consultative Assembly to review its 1966 decree banning the study of Chinese languages in Indonesia.

"Chinese is going to be the main language of business in the Asia-Pacific, besides English and Japanese. We have to master the language to do well in business," he said.

The delegation, which arrived here Sunday, will visit several places in Central Java, including the grave of Tien Soeharto and the Borobudur temple, before leaving Saturday. (jsk)