Transport hampers RI-Turkey trade

JAKARTA (JP): The lack of direct shipping and airline services is one of the main obstacles in improving bilateral trade with Turkey, an Indonesian official said here yesterday.

Director General of Domestic Trade Ilchaedi Elyas said shipping cargo or visiting Turkey through other countries made transportation costs higher.

"It makes costs higher and takes a lot of time," he said at the sidelines of a seminar on Turkey's economy, joint investment and opportunities, hosted by the Turkish Embassy.

He said both Indonesia and Turkey felt the importance of opening direct shipping and airline services to boost two-way trade.

"We're working together to solve this problem. Turkey's government has asked Garuda Indonesia (the state-owned flag carrier) to run direct flights to Turkey," he remarked, saying the direct-flight plan was still being negotiated by the two governments.

Ilchaedi, who represented the director general of foreign trade at the seminar, said that Turkey, which had nine free-trade zones offering tax incentives, was not only a good investment opportunity for Indonesian investors, but also a potential market for exporters.

Trade between the two countries has so far favored Indonesia. Indonesia sent US$149.4 million in exports to Turkey last year, while imports from Turkey totaled over $57.1 million.

Indonesia's main exports to Turkey include textiles, garments, forestry products, rubber and crude palm oil.

Turkey's main exports to Indonesia are iron and steel, tobacco, textiles, textile products and tomato ketchup.

Chairman of the Indonesian-Turkey Business Council of the Indonesian Chamber of Commerce and Industry H.M. Moezakkir said that besides shipment and transportation problems, trade between the countries was also hampered by a lack of banking ties.

"The lack of financial agreements between Indonesian and Turkish banks has forced the banks to make transactions through European banks. This has made business more complicated," he said.

He said the two countries formed a business council two years ago to promote the exchange of information on trade, industry and other business activities.

Ambassador of the Republic of Turkey Sevinc Dalyanoglu said his country had abolished all kinds of trade and foreign exchange restrictions and established free-trade zones to attract foreign investors and to promote exports.

He said the Indonesian and Turkish governments had worked together in identifying products most needed by each country.

The two governments had also set up bilateral trade forums, sent trade missions and conducted trade diplomacy to expand the countries' export markets and to identify problems curbing export growth. (08)