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.

RI, SWITZERLAND STEPPING UP ECONOMIC TIES

 By  Andi Abdussalam

           Jakarta, July 7 (ANTARA) - Indonesia and Switzerland are moving forward to building closer relations and cooperation in the fields of economy, trade, investment and development with the current four-day official visit of Swiss President  Doris Leuthard who arrived in Indonesia on Tuesday.

         In order to foster the two countries' 58 year-old relations, President Leuthard, will have a series of meetings with President Susilo Bambang Yudhoyono and other Indonesian officials as well as attend a business forum on the competitive power of Indonesian and Swiss businessmen.

          According to the Indonesian president's spokesman, Dino Patti Djalal, Leuthard will also meet officials of the Indonesian Chamber of Commerce and Industry (Kadin), and visit the International Labor Organization (ILO) project in Jakarta, meet with and attend a lunch with the secretary general of the Association of Southeast Asian Nations (Asean), Surin Pitsuwan.

         Both countries last year established economic cooperation through an economic and trade commission. Through the Joint Economic and Trade Commission (JETC) on November 26, 2009, Indonesia has been named a priority country for strategic partnership with Switzerland in the development of economic and development cooperation.

         Indonesia so far is still suffering from a deficit in its trade balance with Switzerland.

         "Our trade balance is in favor of the Swiss country because we are importing capital goods, while our exports are raw materials whose values are lower," Head of Research and Development of the Ministry of Trade Muchtar said after attending an Indonesia-Switzerland business forum on Tuesday.

         The business forum was attended by a Swiss delegation comprising businessmen from various sectors led by the President of the Swiss Confederation, Doris Leuthard.

         According to data of the Ministry of Trade, Indonesia's trade deficit with Switzerland in 2006 stood at US$70.4 million. It dropped to US$40.5 million in 2007 but drastically in creased to US$141.1 million in 2008.

         In 2009, Indonesia's trade balance with that country also experienced a deficit of 259.2 million U.S. dollars.

         During the January-March 2010 period the country's balance of trade with Switzerland still suffered a deficit of 57.8 million U.S. dollars, which were larger than its trade balance deficit in the same period in 2009 which stood at 54.5 million U.S. dollars.

        The condition has happened not because Indonesia was not able to balance Swiss trade, but because the value of Indonesia's main export commodity products is smaller than the value that of Swiss export products to Indonesia.

         The volumes of their two-way trade have been fluctuated since 2007. The volume of trade between the two countries in 2007-2008 rose 47.09 percent to US$983.9 million. It dropped 38.43 percent in 2009 to US$621.5 million.

          Indonesia's main exports to Switzerland are essential oil, garments, shoes, electronic products, furniture, oil, coffee, tea, spices, and vegetables, tin, plastic and plastic products.

         Switzerland's main exports to Indonesia meanwhile are electricity generator parts, pharmaceutical, chemical and cosmetic products and high-end products.

         Muchtar said Indonesia still could increase its exports to Switzerland to step up their values.

         In the meantime, the Swiss investment in Indonesia is ranked 15th between 1990-2009 totaling US$740.7 million in 120 projects including 36 new projects in the period between 2005 and 2010 worth US$313 million.

         Swiss investment is found in food, chemical and pharmaceutical industries, shipping, plantations, hotels, drinking water project and engineering. The Swiss government also participates in the development of power plants in cooperation with the Asia Development Bank.

         There are around 75 Swiss companies currently operating in Indonesia such as ABB, Ades, Credit Suisse, Nestle, Novartis, Panalpina, Roche, Holcim and UBS providing employment to more than 59,000 people.

         On Tuesday, Indonesia in cooperation with Switzerland launched a Sustaining Competitive and Responsible Enterprises (SCORE) program. Sofyan Wanandi, the chairman of the Indonesian Employers' Association (APINDO), said the program was initiated to help small and medium  businesses in the country improve their quality and productivity, working conditions, reduce environmental impacts and increase collaboration and communication between employers and workers.

         "I think we must support the program because it is very important and needed by small and medium businesses in Indonesia. Small and medium businesses must increase their productivity, efficiency, competitive power and cooperation between employers and workers in the framework of creating better working conditions. SCORE could help small businesses in Indonesia compete in national and international markets," he said.

         Indonesia is one of the seven countries that have chosen to implement the SCORE project. The other countries include China, Columbia, Ghana, India, Vietnam and South Africa. In Indonesia the program has been started in the spare parts sector and would soon cover two other business sectors.

         The joint commitment was signed by representatives from  workers' unions and the employers' association, witnessed by the president of the Swiss Confederation, Doris Leuthard and Indonesian Manpower Minister Muhaimin Iskandar.

         Dino said the visit of President Leuthard this time not only reflected the two countries' good bilateral relations but also as part of efforts to increase the friendship and cooperation that have been developed for the past 58 years.

         The good relations between Indonesia and Switzerland were also marked by visits by the two countries' leaders such as in January 2000 by late President Abdurrahman Wahid and in February 2007 to Indonesia by Swiss President Calmy Rey.


(T.A014/A/HAJM/13:50 ) July 7, 2010

RI, TURKEY OPENING NEW CHAPTER IN BILATERAL TIES

 BY Andi Abdussalam

           Jakarta, June 30 (ANTARA) - Indonesia and Turkey are opening a new chapter in their 60-year old ties by promoting cooperation in the economic and political fields as well as in other sectors of common interest such as democracy and global issues.

         "Let us open a new chapter in our relations that keep increasing," President Susilo Bambang Yudhoyono said at a joint press conference with Turkish President Abdullah Gul after their meeting at the Turkish presidential palace on Tuesday.

          The two countries agreed to increase cooperation in five sectors and signed 8 cooperation accords which they expect to enable them to face challenges in the 21st century.

          The agreements were reached by the two countries during President Susilo Bambang Yudhoyono's three-day working visit from June 28 to June 30, 2010 to Turkey. He was the first Indonesian president to visit Turkey in the last 25 years.

         "Actually cooperation between the two countries has existed  for quite a long time but I hope it will be expanded in five areas," the President said when he addressed the Turkish parliament.

         The two leaders agreed to step up cooperation in the five sectors, namely world economic reform, promoting harmony between  civilizations, promoting democracy,  the solution of conflicts and cooperation in dealing with global issues.

         In the economic field, they among other things agreed to further boost cooperation in  trade, tourism and investment.

         "We are also inviting investors from Turkey to invest in various sectors in Indonesia such as geothermal energy, trade, economy and others," Yudhoyono said at the press conference.

         Earlier, the two countries signed 8 cooperation accords. President Yudhoyono said the eight agreements that had been signed would open a new chapter in the relations between the two countries.

         The two leaders witnessed the signing of cooperation documents in the fields of politics, defense industry, small and medium businesses, joint programs to increase investment and in news exchange between state television station TVRI and Turkish television.

         "The eight cooperation documents are made up of five memorandums of understanding (MoUs), two agreements, and one program," Foreign Minister Marty Natalegawa said.

          In the trade sector, Indonesia and Turkey agreed to step up their bilateral trade from its current value at US$2.1 billion to US$5 billion over the next few years.

         According to Turkish President Abdullah Gul, Indonesia is not only a country with majority Muslim population but also a country which is rich in natural resources and economic potentials. "I even believe the US$5 billion target could grow to US$10 billion," President Gul said.

         He said that it would be possible because of the Turkish characteristics which are similar to those of Indonesians and because the psychological relationship between the two nations was of very long standing.

         In the field of tourism, the two nations agreed to scrap visa requirements and increase air-links.

         President Gul said that Turkey wished for these relations to reflect on tourism and other areas, as well. Gul noted that the two countries had previously agreed to issue visas to both countries' nationals at the border and that now work began on scrapping the requirements totally.

         "All this shows that opportunities to cooperate are vast despite the physical distance between our two countries. I wish for this visit to be very successful and for relations between Turkey and Indonesia to improve in every aspect," President Gul noted.

         President Gul said now a Turkish airline had also opened a flight service between Jakarta and Istanbul enabling Asian people to go to Europe and vice versa. Therefore, visa cooperation between the two countries would be stepped up to become a free visa cooperation to promote visits between the two countries.

         Besides the emphasis on the economic sector, the two nations also stressed the importance of increasing cooperation on issues of civilization, democracy, conflict solutions and other global issues.

         In cooperation of promoting harmonization between civilizations, Indonesia and Turkey have a similarity in the role and dialogues between religious peoples and between the eastern and western civilizations and cooperate in building communication between civilizations.

         "Promoting democracy, the third factor, does not mean we are exporting democracy, but sharing experience on democracy and learn from making mistakes from one another," the President Yudhoyono said.

         Turkey, he added, like Indonesia in the beginning of the 20th century underwent changes and reforms and develops into a strong democratic country.

         In the area of conflict solution, he underlined the importance of the role of Turkey and Indonesia in helping solve the Palestinian problem.  He touched on the tragedy of the Mavi Marmara humanitarian ship and expressed deep regret over the incident and demanded for a fair and transparent investigation.

         "Israel also needs to open the illegal blockade of the Gaza strip as it promoted and triggered a humanitarian crisis which is against international law," Yuhoyono pointed out.

         On the global issues, the  President called on Indonesia and Turkey for their support in dealing with global issues like climate change, terrorism and other issues.

         "I called on all of you to join hand in hand and cooperate in developing a better future," he said.

    (T.A014/A/HAJM/13:10/...  ) June 30, 2010

RI, FINLAND STEPPING UP BILATERAL COOPERATION

BY Andi Abdussalam

           Jakarta, April 27 (ANTARA) - Indonesia and Finland are holding talks on bilateral, regional and other international issues of mutual concern as part of their efforts  to foster closer cooperation in various fields, such as economy, forestry, science and technology.

         Issues of mutual interest are being discussed by Indonesian President Susilo Bamang Yudhoyono and Finnish Prime Minister Matti Vanhane who is currently on a three-day state visit to Indonesia from April 26 to April 28, 2010.

         During the Finnish leader's tour of Indonesia to reciprocate Yudhoyono's visit to Finland in September 2006, both heads of government discussed cooperation in the trade, investment, forestry, science and technology sectors.

         Indonesia and Finland have very good bilateral relations in such sectors as politics, economy, trade and socio-cultural sector. Inthe 1980s, both countries agreed to form a Joint Commission which supports cooperation in sectors such as forestry, trade, science and technology.

         In a meeting on Tuesday with the Finnish Prime Minister who was accompanied by several entrepreneurs from Finland, President Susilo Bambang Yudhoyono invited Finnish investors to participate in a number of development programs in Indonesia.

         The Finnish prime minister's entourage includes business delegation chief Jarmo Honkamaa and Eeva Kalli, the prime minister's adviser for the European Union.

         "We invite Finnish investors to invest in Indonesia," President Yudhoyono told a press conference. The head of state hoped that investments from Finland would increase significantly.

         He said Indonesia was one of few countries which enjoyed positive economic growth during the global economic crisis with economic growth at 4.5 percent.

         Some 112 Finnish companies have been engaged in 155 types of businesses with their Indonesian counterparts, among other things in exports, imports, productions, and technical products sale agents.

         Among Finnish major companies in Indonesia are   Nokia (telecommunication), Vaisala (navigation and meteorology), Kemira (chemical), Wartsila (factory and shipping turbines).

         Meanwhile, Finnish Prime Minister Matti Vanhanen said he was accompanied by a number of businessmen during his three-day visit in Indonesia. The Finnish government always encouraged the country's businessmen to invest in Asia, he said. Finland has a lot of experience in renewable energy, telecommunication network and the forestry sector, he said.

         Therefore, according to Chief Economic Minister Hatta Radjasa, Indonesia and Finland are developing economic cooperation through bio-energy development, forestry management and investment.

         "Certainly we will focus on investment, renewable energy and forestry," Hatta Radjasa said on Tuesday. With regard to renewable energy and forestry, regulations have been issued in 2006 and 2008.

         "They are already signed by the President. We will use them. Finland will provide the funds for forestry management in Riau and Kalimantan," he said.

         Regarding renewable energy development Hatta said Finland was very active in it. "We wish to find the best form or cooperation in the development of bio-energy including biofuels," he said.

         "The essence is we will push efforts in investment on bio-energy development and forestry management. We will also offer geothermal energy development," he said.

         In the forestry sector, Yudhoyono and Vanhanen discussed cooperation in forest magement. "We discussed cooperation in the field of forestry. As you all know, Finland has a lot of experience and expertise in forest management," President Yudhoyono said.

         The cooperation is in line with the two countries' commitment to dealing with climate change and ensuring   continuity in the proper management of forests. The two countries agreed to continue to develop global cooperation to ensure effective cooperation to meet the challenge of climate change.

         In the meantime, Prime Minister Vanhanen said Finland forestry-related matters were important because 70 percent of his country's land territory was covered in forests.

         Finland is trying to achieve a balance between its forest growth and forest  exploitation while Indonesia has great potentials in the forestry field. Cooperation between Indonesia and Finland in the forestry field has existed since 1981 when they launched a Forestry Hand Tools Study project.

         In January 2010, a meeting was held with Finland's foreign ministry to discuss Finland's support for the forestry sector in connection with climate change. Finland has expressed its interest in participating in the Kalimantan Forest and Climate Partnership (KFCP) project in Central Kalimantan currently being carried out by Australia.

         Besides in the forestry sector, the two countries also discussed cooperation on logistics system. At his meeting with Vice President Boediono, Matti Vanhannen offered cooperation in national logistics system to Indonesia to support the country's economic activities.

         Vanhannen viewed Indonesia's economy could grow better if it is supported by a good national logistics system. "Finland although it is a peninsula it consists of several islands and ports. Ninety percent of its trade distribution is done by sea and only 10 percent done by air or land," Vice Presidential Spokesman Yopie Hidayat quoted Vanhannen as saying.

         Vanhannen said Indonesia as an archipelagic country needs a good national logistics system. Finland would help Indonesia?s shipping system, shipping lanes and others.

         Vice president Boediono supported the implementation of a good national logistic system in the country. "Indonesia has a lot of potential while Finland has knowledge, technology and capital which could be shared with others," he said.

    
(T.A014/A/HAJM/21:35/....  ) April 27,  2010