Indonesian Political, Business & Finance News

Vaile: Australia not planning countermeasures tin RI row

| Source: AFP

Vaile: Australia not planning countermeasures tin RI row

SINGAPORE (AFP): Australia said Friday that it would keep up
exports of major commodities to Indonesia and not impose
countermeasures amid a row between the two countries over
troubled East Timor.

"In terms of trade, we're not planning any, in terms of
interrupting our trade with Indonesia," Australian Trade Minister
Mark Vaile said when asked about the possibility of Australia
imposing its own embargo on Indonesia.

"We understand and are concerned with some of the comments but
to date there has been no interruption to the trade in terms of
the main commodities with Indonesia," Vaile said. The commodities
include cotton, wheat and beef.

Vaile spoke at a media briefing after he and New Zealand
International Trade Minister Lockwood Smith met their
counterparts from the Association of Southeast Asian Nations
(ASEAN) to discuss trade ties.

Vaile said Australia would be concerned if Indonesia pushed
through with an embargo but it "will try to keep the issues
separated because our relationship (with Indonesia) is one that
is deeply valued by Australia."

Relations between the two countries have turned frosty due to
Australia's criticism of Indonesia's handling of the East Timor
violence and Canberra's role in the deployment of an
international peacekeeping force there.

Anti-Australian rallies in Indonesia have increased since
Australia was appointed to lead the UN-sanctioned multinational
force for East Timor, following chaos in the territory after its
people voted for separation from Indonesia.

Australian firms engaged in business with importers in
Indonesia "are maintaining contact on a daily basis discussing
arrangements for the future," Vaile said.

"I had a meeting with the Australian Wheat Board yesterday ...
and the indication from the wheat board was there was no
interruption in the trade," he added.

Two-way trade between Australia and Indonesia is worth about
A$5.5 billion (US$3.52 billion) annually but the Indonesians
enjoy a 1.4 billion dollar trade surplus, largely due to
Australian imports of crude oil and petroleum products.

Australia's exports of cotton to Indonesia hover around A$300
million, while wheat amounts to A$270 million, Vaile said.

Indonesia's Trade and Industry Minister Rahardi Ramelan has
accused Australia of mixing politics with trade and warned that
Jakarta might expand a campaign to cut its commodity imports from
Australia.

He charged that Australian unions which staged a boycott of
Indonesian cargo over the East Timor crisis sparked off the trade
problem.

View JSON | Print