INDONESIA, SLOVAKIA STEPPING UP ECONOMIC COOPERATION

by Andi Abdussalam

Jakarta, Oct 11 (ANTARA) - Amid its efforts to develop economic potentials through a master plan for the acceleration and expansion of its economic development, Indonesia is offering cooperation in various economic sectors to Slovakia.          So far, no Slovakian companies have made investment in Indonesia while the value of the two-way trade between the two countries is still less than US$100 million.          Thus the conclusion of agreements worth US$1 billion on Tuesday between the private companies of both nations was a breakthrough in the economic relations of the two countries.          The economic cooperation between the two countries private sectors was concluded on sidelines of the visit to Indonesia of Slovakian President Ivan Gasparovic who took with him private company leaders to explore cooperation with their Indonesian partners.          The cooperation agreements between the private companies of the two countries are expected to be signed during a Slovakia-Indonesia Business Forum at the Ritz-Carlton Hotel here on Tuesday.       Chief Economic Minister Hatta Rajasa said there were at least 11 agreements in several sectors which were concluded between the private sectors of the two countries. Business sectors of cooperation included food and petrochemicals.          One of the important sectors of cooperation between a Slovakian firm and the Andalas University in West Sumatra was the development of wheat plantation in Indonesia, he said.          Hatta said that no Slovakian companies had previously made investment in Indonesia so that the conclusion of 11 agreements that would be signed on Tuesday was a breakthrough.          The chief economic minister said that the value of the two way trade between the two countries was still small, namely less than US$100 million.          He said that one of the reason of the Slovakian president to visit Indonesia with a business delegation was that he was interested in the Master Plan for the Acceleration and Expansion of   Indonesia's Economic Development.       Earlier, President Susilo Bambang Yudhoyono said that a number of private Slovakian companies wanted to invest US$1 billion in a number of business sectors in Indonesia. He told a joint press conference with Slovakian President Ivan Gasparovic that the Slovakian firms would cooperate with Indonesian counterparts in the development of cement factories in Central Java and West Papua.          Besides, the private companies of the two countries would also cooperate in the development of a tire factory in Tangerang, Banten and power plants in West Nusa Tenggara and Batam.          "In essence, we are encouraging the private sectors of the two countries to make use of the opportunities in Indonesia and in Slovakia," the president said.          In the meantime, state-owned Bank BNI also concluded a cooperation with its Slovakian counterpart Eimbanka SR in order to support and facilitate trade activities between the two countries.          "This cooperation is very strategic because the trade balance between two counties has begun to increase significantly every year. The potentials of financial transactions between the two counties are quite big," Bank BNI President Director said after signing the cooperation on Tuesday.          The cooperation also give a chance to the state-owned bank to expand its business in Easter Europe.  The MoU was signed between BNI President Director Gatot M Suwondo and Eximbanka SR General Director Mario Schrenkel, witnessed by Coordinating Minister for Economic Affiars Hatta Rajasa.          Gatot said that the cooperation between BNI and Eximbaka SR covered various aspects such as co-financing, co-insurance, reinsurance of export credit risk, assistance in the management of non-performing loan, exchange of information in goods and service trade.          "The cooperation between Eximbanka SR and BNI provides an opportunity to expand its business to Eastern Europe, in Slovakia in particular. This also gives a chance to BNI customers to expand their business to the Western European market and the United States," he said.          The cooperation between BNI and Eximbanka SR was reached after the government of Indonesia and Slovakia agreed to increase cooperation in the economic fields.          For this cooperation, Indonesia offers nine proposals or cooperation agenda to increase bilateral cooperation of the two countries. Of the nine agenda is the cooperation in the field of banking for the interest of trade financing.          So far, Indonesia and Slovakia have established cooperation through their central banks to support the increasing transactions and cooperation in the economic fields of the two countries.          The current visit of the Slovakian president with a delegation of private company leaders is expected to further enhance economic cooperation between the two countries.          The Sovakian president?s visit has been planned since early this year when the two countries held a meeting in Indonesia, namely in Jakarta and Surabaya, last February. During the meeting, Indonesia and Slovakia reached an agreement that would provide legal certainty for investment cooperation between the two countries.          The agreement would replace an old one made in 1994 to meet one of the provisions regarding investment policy within the European Union. Indonesia and Slovakia have economic cooperation potential which has yet to be worked out optimally after the latter joined the European Union in May 2004.         The bilateral agreement on investment will complement efforts to step up trade and investment between the two countries.  In the past four years since 2007, efforts to step up trade and investment had been made among others through regular business meetings of Indonesian and Slovakian embassies officials.***5*** (T.A014/A/HAJM/17:35/f001)11-10-2011 17:35: