Oilfields development
Growing Trade Relations With Russia Set to Get Boost With Ministerial Visit
With Trade Minister Mari Elka Pangestu set to head to Russia next week, Indonesia is eyeing the emerging economic power as a prime export destination.
Representatives from 14 Indonesian companies in the food and beverages, tires, textiles and chemicals industries will accompany the minister during the trade mission from Sept. 15-18, which will visit both Russia and Belarus.
“This is our first visit that aims to improve trade and investment potency,” Mari told reporters on Wednesday.
During the upcoming meeting, Mari said the Trade Ministry would propose the establishment of an annual forum for trade officials from Russia and Indonesia.
“We will also ask for clarification regarding economic policies in Russia, since the country has yet to become a member of World Trade Organization,” she said.
Russia is the biggest economy outside the WTO and is the world’s 11th-biggest importer, recording $160 billion in imports last year. It is home to more than 140 million people, with a per capita income that exceeded $15,200 in 2009.
According to Mari, Indonesia sends Russia mostly palm and coconut oil, tea and electronics. From Russia, Indonesia imports mostly chloride and iron.
Over the past few years, non-oil-and-gas exports, including palm and coconut oil, have enjoyed a steady rise, reaching $315.7 million last year from $244.4 million in 2005.
According to ministry data, non-oil-and-gas exports to Russia already reached $242.2 million in the first half of this year, with similar growth in exports from the oil-and-gas sector.
Meanwhile, Russian imports have seen parallel growth. For the non-oil-and-gas sector, imports from Russia were $438 million in 2009, up from $431.5 million in 2005, but have already reached $429.9 million in the first half of this year.
“If the good export trends continue, we are expecting the values to reach between $700 million and $1 billion annually within the next five years,” Mari said.
