INDONESIA, FINLAND FOSTERING CLOSER ECONOMIC TIES

By Andi Abdussalam

Jakarta, Feb 18 (ANTARA) - Indonesia and Finland are moving closer to fostering economic cooperation with pledges to intensify bilateral trade and investment between the two nations.

        The pledges were made by Indonesian President Susilo Bambang Yudhoyono and his visiting Finnish counterpart Tarja Halonen during their meeting here on Monday.

        Unlike other Asian nations, Indonesia which is rich in natural resources opens various kinds of economic sectors to investors from any country, including Finland.

        "Indonesia is an open country. Not all countries are open like Indonesia. Therefore, we are open to all kinds of investment from Finland," Vice President Jusuf Kalla said in a seminar on Indonesia-Finland Business Relations.

        Both nations have the potentials to increase their cooperation as their two-way trade is still low.

        "We have agreed to intensify trade and investment cooperation. The value of our two-way trade last year was still low, namely only US$550 million, while Finnish investment in Indonesia amounts to only US$2 million," President Yudhoyono said at a joint press conference with Halonen at the Merdeka Palace.

        Besides the agreement to intensify trade and investment, the two countries also established cooperation in the environmental field.

        They have signed an agreement to cooperate in the environmental field and in anticipation of climate change as a follow-up to the United Nations Framework Convention on Climate Change (UNFCCC) held in Bali last year.

        The agreement was signed by Indonesian Environment Minister Rachmat Witoelar and his Finnish counterpart, Paavo Vayrynen, in the presence of President Susilo Bambang Yudhoyono at Merdeka Palace.

        "Cooperation in environmental issues between Indonesia and Finland is a follow-up to the Bali conference on climate change last year," President Yudhoyono said.

        Yudhoyono said Indonesia and Finland had so far been cooperating in the forestry and environment fields but with the signing of the agreement on Monday, the two countries were expected to collaborate even more closely.

        Meanwhile, the Finnish president who is on a state visit to Indonesia from Saturday until Tuesday, said the two countries would continue to step up their cooperative relations.

        "The Bali conference on climate change was a good momentum for us to forge further cooperation in sustainable development programs," Holonen said. She said under the newly-signed agreement the two countries would make joint efforts to reduce greenhouse gas emissions and global warming.

        On efforts to boost exports, Yudhoyono said Finland was a potential market for Indonesian exports which had mostly gone to the United States, China and Europe.

        "I have asked our trade minister and the chairman of the Indonesian Chamber of Commerce and Industry to identify or find ways in which trade with Finland can be stepped up," he added.

        President Halonen, meanwhile, noted Indonesia had huge natural resources that could be developed for the benefit of its people.

        She said Finland had wide international experience in the management (of natural resources) and would look into the possibility of sharing this experience with Indonesia.

        She added Finland also wanted to intensify cooperation in many other sectors with Indonesia.

        Indonesian Trade Minister Mari Elka Pangestu, meanwhile, said opening trade relations with Finland would also mean opening opportunities to step up trade with the European region, Scandinavian nations and Russia.

        The trade balance between Indonesia and Finland was now still in the latter's favor as Indonesia's imports from Finland totaled US$373 million and its exports to Finland US$177 million in 2007.

        Pangestu said the Indonesian government was actually hoping that some big companies in Finland, including Nokia, would invest in Indonesia.

        According to Vice President Jusuf Kalla, Finland is well-known to Indonesians for two things: Nokia cell phones and Helsinki. "Most Indonesians are using Nokia cell phones and Helsinki becomes popular since the conclusion of a peace accord between Indonesia and the Free Aceh Movement (GAM) there," he said.

        But Finland has not only Nokia, but also many other large companies there.

        "Therefore, cooperation between the two states, particularly in the economic and trade fields will complement each other," the vice president said. (T.A014/B/HNG/B003). (T.A014/A/A014/B003) 18-02-2008 23:54:24