Jakarta – The Senior Ministers of Indonesian Economy, Erlana Hartarto, said – in a statement to Al -Jazeera Net – that the Indonesian negotiating team with the American side will go to the United States tomorrow to negotiate with the American side not only regarding customs tariff rates, but also regarding mutual investment between the two countries.
He added that Indonesia hosts many American strategic investments, and this is what the American side will remember.
He pointed out that he will make a phone call Monday evening with the US Secretary of Commerce, that is, before the arrival of the negotiating delegation, explaining that Indonesia will present to the United States a bilateral trade agreement proposal.
Exploited free trade agreements
On the other hand, regarding trade liberalization agreements with other economic regions and blocs, the Indonesian minister said, at a press conference at the conclusion of the Indonesian -Russian commercial forum, that the closest expected agreements in the near future will be with the Eurasian Economic Union, which includes Russia and a number of Central Asian countries, then with the European Union.
He pointed out that the talks have reached their last tours, and the agreements include inter -customs definitions and investment guarantees, as part of an Asian strategy that seeks to diversify and strengthen the markets outside the United States of America.
Commercial Forum .. the most important deliberations
Regarding the Russian Indonesian commercial forum held in Jakarta today, Monday, Minister Hartarto – who supervises the coordination of a number of economic ministries – said that it is organized for the first time since 2018, and please achieve communication and trade agreements between Russian and Indonesian companies.
He described economic cooperation between Russia and Indonesia as a strategic choice in light of a state of uncertainty that prevails in the global economy, considering that this makes the Trade Liberation Convention with the Eurasian Union countries of particular importance.
Banking and logistical challenges
The Indonesian minister pointed out that the relations with Russia and its neighboring countries have been facing challenges in the banking system, transfers and financial transactions, and for this his country is pushing to enhance communication between the citizens of the two countries, and the development of direct airlines between Moscow and Bali as well as Jakarta, which is discussed with Russian officials during their current visit, in addition to Russian and other Indonesian cities.
This trend aims to enhance trade exchange between members of the Chambers of Commerce in the two countries, including the oil and gas sectors, cybersecurity, power plants, tourism, and the health and educational sector, including scholarships of Indonesian students to Russia, as well as Russian investment in strategic Indonesian projects such as energy and aluminum.
Priority sectors
Today, Monday, Jakarta witnessed the convening of the Indonesian commercial forum with the participation of dozens of Russian and Indonesian officials.
This event comes in light of an Indonesian orientation to expand and diversify global markets, especially in light of the pressure resulting from the American customs definitions on Indonesian manufacturers and exporters, and a Russian trend parallel to strengthening the markets of its products in Southeast Asia.
The Russian Deputy Minister of Trade and Industry, Alexei Grozdev, said that the volume of trade exchange between Russia and Indonesia last year amounted to about 4 billion dollars, and witnessed continuous growth during the past three years by 12%.
He pointed out that despite the circumstances of the siege and pressure imposed on Russia, there are promising opportunities for the growing trade relations between the two countries.
Grozdev stressed the importance of the independence of the economic policies of both sides that support this trend, stressing that Russia is a competitive partner for Indonesia.
Participants in the forum pointed to the strategic importance of mutual commodities such as coal, oil products, fertilizers, agricultural products, palm oil and machines.
Partamina Oil Company expressed its aspiration to establish partnerships with Russian companies in the field of refineries in Indonesia.
Participants discussed Russia’s potential contribution in areas such as pharmacy, manufacturing and oil industries, agriculture, agricultural technologies, machines, fertilizers, and nuclear energy that Indonesia is seeking to develop in the next decade.
Tourism and creative industries
The official of the Russian Committee-Billaria in the Indonesian Chamber of Commerce and Industry, said that the joining of Indonesia to the Brexes Group and its New Development Bank opens wide horizons for cooperation between Jakarta and Moscow.
He expected a free trade agreement between Indonesia and the Eurasian Economic Union countries.
He stressed that one of the most prominent challenges of economic cooperation between the two countries is the obstacles related to bank transfers and financial transactions, which are also challenges referred to by Dennis Mantorov, First Deputy Prime Minister of the Russian, speaking about the need to reduce dependence on the dollar in intra -trade, and seek solutions through investments, digital currencies, and others.
As for the other challenge, it lies in the geographical dimension between the two countries, which was addressed during the forum, where the participants indicated that the current meetings represent the beginning of a long path towards stronger commercial relations between two countries with a population of more than 430 million people.
Jerman Malafov, Vice President of “Fisko” for transportation and Russian logistical services, said that the Southeast Asian region is the most important for trade exchange with Russia during the next stage, noting that there are Russian shipping ships in 18 ports in East and Southeast Asia, and that the process of charging goods between Russia and Indonesia takes about 21 days.
For their part, officials of Indonesian industrial companies, such as “Pio Pharma”, who specializes in drugs and vaccinations, expressed their interest in cooperation with Russian manufacturers, whether in the pharmaceutical sector or food industries.
The two countries are inhabited by capabilities and opportunities that can be translated into large economic, social and industrial benefits, as Indonesia exports palm, coal and other foodstuffs. In return, Russia exports pills, oil products and other strategic commodities.
There is also interest from companies specialized in shipping and logistical services in facilitating the movement of goods despite the distant distances.
Cooperation in the tourism sector is not limited to attracting Russian tourists to the Indonesian islands – as happened during the past few years – only, but also includes promoting Indonesian tourism in Russia, especially in the areas with a Muslim majority such as Kazan, Dagogistan and Chechnya, to be these areas for Indonesians towards Central Asia.
As for the creative field, it was present in discussions between companies, especially in the areas of animation and electronic games, where both countries are produced and active markets in this sector, and it includes tens of millions of young people who are passionate about these products.
In a move to enable Russian products to enter the Indonesian market, the Russian Export Center opened a representative office in Jakarta recently to study the local market and launch promotional campaigns.
More than 150 Russian companies have participated in the past weeks in specialized seminars and sessions to enhance this trend.
