Indonesia, Russia to Boost Trade

TEMPO.CO, Jakarta - Indonesia and Russia have set US$5billion as the the goal for overall trade by 2015, following the 9th joint commission meeting between the two countries in Jakarta on Tuesday, February 25, 2014. Coordinating Minister for Economic Affairs Hatta Rajasa said that trade between both countries in 2013 had reached US$3.34 billion.

Hatta is confident that the trade will grow despite a four-percent decrease in 2013. Both countries have decided to focus on goods and agriculture exports. "We also had intensive talks on investment opportunities under the Master Plan for Acceleration and Expansion of the Indonesian Economy program and in the aviation industry," said Hatta yesterday.

In the meeting, working groups were established on legal, trade, investment and industry, culture and tourist exchange, energy, and transportation and infrastructure. "Both countries agreed to boost investment with incentives such as tax allowances," he said.

Hatta said Indonesia also invited Russian investors to bid for a renewable energy project in Batam and a geothermal plant in West Java. In transportation and infrastructure, both countries agreed to accelerate the construction of a coal train in East Kalimantan province.

In technology and information, both countries agreed to strengthen cooperation in social, science and technology, especially in energy, food, health, medicine, aeronautics, space, satellite, and other researches. In finance, they agreed to discuss public private partnership in Indonesia and bilateral swap arrangement (BSA).

Russian Deputy Prime Minister Dmitry O Rogozin said that there will be more talks on various fields between both countries. Several expert groups and representatives of Indonesia and Russia have begun discussion on the cooperation plan. "In this meeting, there will be more detailed talks than in previous meeting," he said.

GALVAN YUDISTIRA