Phl, Indonesia push $12-B two-way trade

MANILA, Philippines - Indonesia and the Philippines are looking to double two-way trade to $12 billion amid opportunities in the seaweed, mining and palm oil industries.

Indonesia’s vice minister of trade Bayu Krisnamurthi said in a press conference yesterday the two countries have potential to double trade from just $5 billion last year given opportunities in different industries.

“The only way to reach the trade potential, which is to double what it is now,  is through collaboration,” he said.

During the visit of Indonesian President Susilo Bambang Yudhoyono to the Philippines earlier this year, he discussed with President Aquino the need to cooperate to double trade by 2016.

In line with the aim to increase trade  between the two countries,  Krisnamurthi was in the country along with other government officials and private sector representatives to look at ways to work with Philippine counterparts.

He said there is opportunity to increase trade, particularly in the seaweed industry, as both countries are major producers of such.

A memorandum of understanding (MOU) was signed by the two countries’ lead seaweed organizations Asosiasi Rumput Laut Indonesia and the Seaweed Industry Association of the Philippines yesterday to develop the industry.

Trade Undersecretary Adrian Cristobal, Jr. told reporters yesterday the MOU will allow the Philippines to have seaweed supply to be used for the production of carrageenan with its local output reduced significantly by typhoons which hit the country in the past years. 

The Philippines is currently among the biggest producers of carrageenan which is used mainly for food products for its thickening properties.

Aside from the seaweed industry, Krisnamurthi said there is potential to collaborate in mining as both countries are rich in mineral resources, as well as in palm oil production and franchise and retail industries.

The opening of the sea route from the ports of Gen. Santos City and Davao City to Bitung in Indonesia is likewise seen to support higher trade between the two countries.

To double two-way trade, Krisnamurthi said the two countries are planning to hold a business forum either in November and December in Indonesia to present business opportunities available in both countries.

Cristobal said the governments of the two countries are also planning to reactivate the Indonesia - Philippines business councils in line with promoting greater trade activity.

There is likewise a plan to convene the joint working group of Indonesia and the Philippines which meets annually on trade issues, in November or December.

“This is just the start of strengthening bilateral ties with Indonesia. Together, our countries, we have 350 million population and huge potential market…There is much opportunity for cooperation and growth,” Cristobal said.

He added that strengthening trade ties with Indonesia is in line with the Philippines game plan for the Association of Southeast Asian Nations Economic Community (AEC), to promote the country’s competitiveness, compliance to commitments, communications as well as collaboration with other member-states.

The AEC which will be established by the end of 2015, seeks to create a single market and production base to promote free movement of goods, services, investment and skilled labor within the region.