Jakarta, Feb 24 (Antara) - After more than 63 years of bilateral
relations, trade between Indonesia and Russia has yet to significantly
increase as reflected in the 2013 value of trade between the two nations
of only US$3.67 billion.
Indonesia and Russia are committed to boosting their bilateral trade.
Their target is to achieve a bilateral trade volume of US$5 billion this
year.
Chief Economic Minister Hatta Rajasa had told reporters in October 2011
that the government is optimistic about boosting the two nations' trade
volume to US$5 billion by 2014.
"We have committed to improving the trade volume with Russia to US$5
billion by 2014. To achieve that, the working group must work hard,"
Hatta Rajasa had said at that time.
As the trade value between the two countries stood at US$3.37 billion
in 2012 and rose to only US$3.67 billion in 2013, it appears that they
still have to work hard to achieve the target of US$5 billion this year.
Based on Antara's previous data, the two countries have not yet fully
developed their trade relationship as the bilateral trade between them
still accounts for about US$3.3 billion. Yet, the two countries aim to
increase the value of trade between them to about US$5 billion.
The total value of Indonesia-Russia trade in 2012 was reported to be
US$3.37 billion, with Indonesia showing a deficit of US$1.64 billion.
In the January-February 2013 period, Indonesia posted a deficit of
US$451.91 million in its total trade, which amounted to US$741.51
million, according to Bisness.com online media.
Indonesia has maintained a deficit in its trade with Russia because
Indonesia imports large capital goods from Russia, such as machinery,
petrochemicals, heavy equipment and military systems.
To boost their economic and trade relationship, both countries will
discuss ways to advance their bilateral economic, investment and trade
cooperation, particularly when Russia sends members of a joint economic
commission to Jakarta this week.
The Russian Joint Commission on Trade, Economic and Technical
Cooperation will be led by the Russian Deputy Prime Minister Dmitry
Rogozin, while the leader of Indonesia¿s delegation will be the
Indonesian Coordinating Minister for Economic Affairs Hatta Rajasa.
"Russia's Deputy Prime Minister Dmitry Rogozin is responsible for the
development of Russian strategic industries. He will come to Indonesia
with a delegation of about 30 to 40 business executives from various
sectors. They will meet Hatta Rajasa," Indonesian Ambassador to Russia
Djauhari Oratmangun remarked here on Sunday.
The business executives are representatives of major Russian companies,
including Rusal, Russian Railways, and Kamaz Truck.
The Indonesian ambassador noted that the two sides would meet for the
9th Intergovernmental Joint Commission on Trade, Economic and Technical
Cooperation in Jakarta on Wednesday and Thursday, February 5 and 6.
Issues that will form the main agenda of the meeting include industry,
investment, trade, transportation, infrastructure, energy, science and
technology, tourism, education and legal matters.
"We hope that all the Russian firms will conclude a business deal by
signing a memorandum of understanding (MoU). Chief Economic Minister
Hatta Rajasa and Russia's Deputy Prime Minister Dmitry Rogozin are also
likely to sign an agreement at the meeting," Ambassador Djauhari
explained.
Djauhari said the Russian firm Rusal will build a smelter to process
bauxite into aluminium, with an investment of about US$2.5 billion,
while Russian Railways will develop a 168-kilometer railroad in East
Kalimantan, with an investment of about US$1.6 billion to US$2 billion.
The third major Russian company is Kamaz Truck, which has already
signed a memorandum with an Indonesian partner. "Kamaz representatives
visited Indonesia several months ago and found an Indonesian partner.
Its products will be marketed in Southeast Asia," he noted.
Besides these companies, aircraft manufacturer Sukhoi, which produces
passenger airplane Sukhoi Super Jet, and a number oil and gas firms,
including Gazprom and Lukoil, will also be present.
Regarding military cooperation between Indonesia and Russia, Russian
Ambassador to Indonesia Mikhail Galuzin said last week that his country
expected both nations to improve cooperation in the areas of military
technology.
"We hope to further continue our cooperation with Indonesia, which is
aimed at improving peace and security in the Asia-Pacific region and
Southeast Asia," Mikhail remarked at a press conference here on Monday.
Russia and Indonesia have a long history of cooperation in the military
sector and, in 2013, the Indonesian Air Force had accepted the delivery
of the Russian-made Sukhoi Su-30 MK multi-role jet fighters. Russia has
also exported infantry marine fighting vehicle, Boyevaya Mashina
Pyekhota (BMP-3), to the Indonesian Marine Corps. In September 2013,
Russia delivered two units of Su-30 MK jet fighters to the Indonesian
Air Force Base in Makassar.
Meanwhile, in January 2014, the Russian government delivered 37 units
of BMP-3 to the Karang Tekok Navy Training Center in East Java Province.
Based on Antara's data, until last October, the Indonesian Air Force
had a full squadron of Russian Shukhoi jet fighters stationed at
Hasanuddin airbase in Makassar in South Sulawesi.
The squadron's stock of military equipment was completed after six new
Shukhoi SU- 30MK2 jets arrived to join the 10 planes already stationed
there.
"The war planes will be stationed at Air Squadron 11 at Hasanuddin
airbase in Makassar," Defense Minister Purnomo Yusgiantoro said during a
ceremony to mark the official transfer of the aircraft from JSC
Rosoboronexport, representing the Russian government, to the defence
ministry last October.
According to Purnomo, the squadron formation reflects the effort to
develop the country's air defences and is part of the strategic plan of
2010-2014. All of the SU-30 MK 2 and SU-27 SKM Sukhoi jet fighters were
ordered by the Indonesian government, under a contract signed in July
2007.
They
arrived in phases. The first batch arrived at Iswahyudi airbase of
Madiun in 2003, and then the subsequent ones arrived at Sultan
Hasanuddin airbase in 2009, 2010 and 2013. Deliveries of the six
aircraft, bought at a price of US$470 million, were made nine months
earlier than scheduled.***2***
(TA014/INE/B003)
EDITED BY INE
(T.A014/A/BESSR/Bustanuddin) 24-02-2014 20:35 |
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