Significant increase in RI-China trade over past few years

Bejing (ANTARA News) - The value of Indonesia-China trade rose significantly in the past few years as hoped for in an agreement concluded by the two countries` leaders in April 2005, an Indonesian embassy official said.

In an agreement reached by President Susilo Bambang Yudhoyono and his Chinese counterpart Hu Jintao, their countries` two-way trade was projected to reach a total value of US$ 30 billion by 2010.

"Trade between the two countries progressed and grew quite significantly, especially after their two leaders reached an agreement to step up bilateral trade," Andriana Sugandy, economic affairs head at the Indonesian embassy in the Chinese capital, said on Thursday.

The total value of bilateral trade in 2008 is projected to reach US$20 billion and in 2010 US$ 30 billion, she said.

In 2006 Indonesia-China trade already reached a total value of US$19.06 billion. "With bilateral trade standing at that level in 2006, we are optimistic the trade boosting targets for 2008 and 2010 wlll be achieved," Andriana said.

She said the upward trend in Indonesia-China trade was also due to the trade promotion efforts Indonesia had been making in China over the past few years.

"We are now trying to find opportunities and make breakthroughs in getting access to the markets in Chinese provinces we have so far not yet entered such as Lioning, Hubei and Hunan," she said.

Indonesian businessmen`s attttention was so far still focused on traditional markets in China such as Hong Kong and Beijing. "Yet, other provinces in China also badly need products from Indonesia," she said, adding that efforts to promote Indonesian products in China needed to be made on a constant basis.

Among Indonesian products for which there was high demand in China were crude palm oil (CPO), paper and pulp, wooden goods, petroleum and natural gas.

Indonesia`s imports from China mainly consisted of electronic goods, organic and inorganic chemicals, textiles and textile products.

Andriana said six years ago (2001) the value of Indonesia-China trade stood at only US$6.7 billion but in 2006 the figure had increased more than three times to US$19.06 billion.

"This means the two countries potentials to increase trade relations are very great and can still be stepped up," she said.

To further intensify their bilateral trade, the two countries had set up a "Working Group on Bilateral Trade Resolution" which was tasked with identifying trade potentials that can be further developed and existing impediments.

The working group meets at least once a year in either Indonesia or China on alternating basis but the frequency of meetings culd be increased if necessary.