RI, KAZAKHSTAN STEP UP ECONOMIC TIES

By Andi Abdussalam

Jakarta, Sept 2 (Antara) - Indonesian President Susilo Bambang Yudhoyono began a two-day working visit in Kazakhstan on Monday, in an effort to foster closer economic cooperation of both the nations.          Indonesia and Kazakhstan have been cooperating with each other ever since they established diplomatic relations in 1993. Their two-way trade volumes have increased from US$35 million in 2008 to US$64 million last year.          The current visit of the Indonesian President is also expected to boost bilateral trade and increase its volumes to US$100 million in 2017.          Intensive efforts to foster economic cooperation between the two countries have been made since the visit of Kazakhstan's President Nursultan Nazarbayev to Indonesia last year.          Last year, in the fifth Astana Economic Forum, both countries signed seven memorandums of understanding (MoUs).          "As already known, the state visit of Kazakhstan president Nursultan Nazarbayev resulted in an agreement to increase the trade value between the two countries to US$100 million by 2017," said Chief Economic Minister Hatta Rajasa.          Hatta noted that the volume of trade between the two countries has doubled from US$35 million in 2008 to US$64 million last year.            However, he said, the figure could be much higher if the two countries increased their cooperation in various fields.          Prior to the current visit of President Yudhoyono to Kazakhstan, Indonesia-Kazakhstan's Joint Commission on Economic Cooperation (JCEC) held its first meeting last month to formulate and reinforce both countries' economic cooperation.          "Keeping that in view, we have agreed to increase trade volume and cooperation in 13 economic sectors," Hatta explained.          He revealed that the two sides signed a memorandum of understanding at the JCEC meeting for the establishment of Indonesia-Kazakhstan Joint Economic Cooperation.          "We have also agreed that some joint projects will be implemented even before President Susilo Bambang Yudhoyono visits Kazakhstan," Hatta said.          Hatta Rajasa said the JCEE meeting formulated 13 economic sectors for cooperation of the two countries.          "Kazhakstan is a trading partner as well as a friend of Indonesia. The joint commission meeting was quite productive, resulting in agreements in 13 economic sectors, categorized under five working groups," Hatta Radjasa said.          The 13 economic sectors are trade, investment, industry, agriculture, infrastructure oil, gas, energy, transportation, logistics, banking, shariah finance and pharmacy.          The meeting of the Joint Commission on Economic Cooperation is a huge opportunity for investors and government officials in Indonesia to tap on economic potentials and increase collaboration through trade agreements.          He added that economic cooperation between Indonesia and Kazakhstan would benefit a number of economic sectors such as investment, trade, agriculture, and logistics.          Therefore, he said Indonesia and Kazakhstan had agreed to hold the first meeting of JCEC in conjunction with the 20th anniversary of their diplomatic relations.          Before the departure of President Yudhoyono to Kazakhstan on Sunday, his spokesman Faizasyah said  that Kazakshtan is a country in Central Asia which recorded positive economic growth and produced different kinds of agricultural products, particularly wheat and is rich in natural resources such as oil and gas.          He said Indonesia was able to develop mutually beneficial cooperation with Kazakhstan in the field of trade, energy and food.          Therefore, the current visit of the Indonesian president is to focus on trade and investment cooperation. "We will discuss opportunities for Indonesia to do business in the energy field in that country," President Yudhoyono said at Jakarta's Halim Perdanakusuma airport a moment before leaving for Astana on Sunday.          According to Hatta Rajasa last month, Indonesia is planning to make investments in various sectors in Kazakhstan. The value of investments Indonesia is planning to make is about US$1 billion.         "Indonesia will make investment in Kazakhstan ranging from tyre plants to instant noodles factories. We set a relatively big investment target, namely between US$500 million and US$1 billion," Hatta Rajasa said.          According to the minister, the Indonesian government set a relatively big investment target, particularly in the tyre factory, so that it could use Kazakshtan as an entry gate of Indonesia tyre products to Russia and Central Asia.          Besides  on  investment, cooperation will also include other sectors  such as food, energy and security.          Teuku Faizasyah said President Yudhoyono who was now on visit to Kazakhstan at the invitation of President Nursultan Nazarbayev to reciprocate his tour of Indonesia last year, would discuss bilateral issues including trade and investment, food  and energy security, cultural  and education cooperation.         During Yudhoyono's stay in Astana, the capital of Kazakhstan,  the  two countries will sign five memorandums of understanding on economic cooperation, and cooperation in battling terrorism  and money laundering, culture and education  and diplomat training.         President Yudhoyono is also scheduled to meet with Prime Minister Serik Akhmetov  and Kazakhs business leaders.         Yudhoyono's visit to Kazakhstan is the first leg of his tour of three countries which included Poland and Russia, from September 1  to 7, 2013.        From Kazakhstan, Yudhoyono and his entourage will proceed to Poland at the invitation of Polish President Bronislaw Komorowski.        In Russia, the president will attend the G20 Summit which will discuss current global economic conditions.***3*** (T.A014/INe)