Mexico Invites Indonesia to Participate in Harbor Dev Project

TEMPO.CO, Jakarta - The new Mexican government is keen to invite Indonesia and Asia Oceania countries to take part in the development of a harbor project in Southern Mexico, a project that will become one of the main focus of the AMLO government over the next six years.

Indonesian Ambassador to Mexico Yusra Khan made the remarks in connection with the signing of a Memorandum of Understanding (MoU) between Indonesia Eximbank and Bancomext. This is expected to increase the involvement of Indonesian entrepreneurs in Mexico.

The ambassador said the offer was in line with the commitment of the new Mexican President, Andres Manuel Lopez Obrador (AMLO), to develop the infrastructure of the Southern Mexico.

According to the Indonesian ambassador, AMLO made the offer when receiving nine Ambassadors from Asian and Oceania countries, Australia, Philippines, Indonesia, Japan, South Korea, Malaysia, New Zealand, Thailand, and Vietnam.

Yusra Khan told Antara correspondent in London on Thursday that an MoU had been signed at the weekend in Nusa Dua, Bali, between the Indonesian Export Financing Institution (Indonesia Eximbank) and the Mexico Export and Import Financing Institution (Banco Nacional de Comercio Exterior, Sociedad Nacional de Credito or Bancomext).

The signing was carried out by Head of BOD concurrently Executive Director of Indonesia Eximbank Sinthya Roesly and Bancomext CEO Francisco Gonzales Diaz as a follow-up to efforts to enhance Indonesia-Mexico`s bilateral economic and trade ties.

Ambassador Yusra Khan welcomed the signing of the MoU between Indonesia Eximbank and Bancomext, as an effort to boost Indonesia-Mexico`s economic and trade cooperation, primarily driving Indonesia`s trade surplus with Mexico.

Based on data at the Ministry of Trade, the value of Indonesia`s oil and gas and non-oil exports to Mexico in 2017 reached US$986.5 million. This figure is higher than that in 2016 which was recorded at US$815.1 million.

Indonesia`s oil/gas and non-oil/gas imports from Mexico were recorded at US$219.6 million. This figure also increased over the year 2016 which was recorded at US$177.0 million. Overall in 2017 Indonesia enjoyed a surplus of US$63 million.

Ambassador Yusra Khan said in addition to boosting trade value, the signing of the MoU between Indonesia Eximbank and Bancomext is expected to increase the involvement of Indonesian entrepreneurs in Mexico.

In response to AMLO`s invitation on September 25 or three weeks prior to the signing of the MoU between Indonesia Eximbank and Bancomext in Bali, the Indonesian embassy in Mexico City faciliated the meeting of two Indonesian state-owned enterprises, PT INKA and PT Barata Indonesia, with Bancomext CEO Francisco Gonzales Diaz in Mexico City.

The meeting between two Indonesian SOE representatives with Bancomext is to confirm Bancomext`s support as an export and import financing institution if both Indonesian SOEs are interested in a project that is being built in Mexico.

It is hoped that PT INKA, PT Barata Indonesia and other strategic industries in Indonesia such as PT PINDAD and PT PAL may be involved in port development projects in Southern Mexico, among others through the provision of locomotives, train wagons, railway components and parts as well as other heavy equipment support for port activities.

The signing of the MoU between Indonesia Eximbank and Bancomext, the export and import financing institutions was the second of its kind after the first one was carried out in 2013.

This showed the increasing mutual trust between the two sides and the desire to continue improving Indonesia-Mexico financial relations and cooperation.

ANTARA