Indon appeals for closer trade ties
Indonesian ambassador Nadjib Riphat Kesoema has invited WA to play a key role in developing new ports and supplying lightweight ferries as his country enters an era of rapid development.
Mr Kesoema appealed for closer trade ties as business leaders braced for any fallout from a rift between Jakarta and Canberra over the pending execution of drug smugglers Andrew Chan and Myuran Sukumaran.
Trade Minister Andrew Robb has already put a hold on plans to lead a trade mission to Indonesia this month amid heightened tensions between the countries.
Speaking at an Australia Indonesia Business Council breakfast in Perth yesterday, Mr Kesoema detailed Indonesia's plans to build a sea highway from east to west. The $60 billion-plus project backed by President Joko Widodo includes building 24 ports, industrial estates, rail networks and a fleet of ships and ferries.
Mr Kesoema said it was a huge opportunity for local businesses given WA's capabilities in operating ports and in shipbuilding.
"Indonesia is planning to expand its ports in some provinces," he said. "We invite business people in WA to participate in these infrastructure projects through investment in port management, handling, capacity building and other forms of co-operation."
Mr Kesoema said the WA ship building industry had a track record of supplying the passenger ferries required by Indonesia.
"We need to develop inter- island connectivity by ferry," he said. "The Indonesian Government invites WA to contribute to the construction of shipyards and the need for lightweight-type ferries."
Mr Kesoema also stressed the need for cross-investment in agriculture, including in farmland, for WA to build a stronger trade relationship with Indonesia.
He predicted massive demand for food from WA as Indonesia's middle class grew from 60 million to 150 million people over the next decade.
"We are very different country to the one that most Australians think they know," he said.
Mr Kesoema said Jakarta was moving to cut red tape for business, improve its green credentials, stamp out corruption and reform its justice system.
AIBC WA chairman Phil Turtle said the timing of Mr Kesoema's speech highlighted the resilience of local business ties with Indonesia in difficult times.
"We don't expect any trade fallout but you always fear knee-jerk diplomatic responses," he said.
