Kuala Lumpur - It is important for Indonesia and Malaysia to strengthen bilateral cooperation in order to face global economic slowdown and increase trade and investment, says Indonesia Trade Minister Dr Mari Elka Pangestu.
“We can build our complementarities not only just to increase trade and investment between each other but also to strengthen our position to face greater competitiveness,” she told reporters after the first Malaysia-Indonesia Joint Trade and Investment Committee (JTIC) meeting here today.
International Trade and Industry Tan Sri Muhyiddin Yassin and Mari co-chaired the meeting.
Commenting on the meeting, Mari said: “I`m pleased that it is productive and fruitful. We are able to talk about the potential cooperation in a win-win way as well as identified issues or questions that need to be clarified or resolve.”
She said the committee was an important forum for both countries to boost bilateral cooperation as well as to resolve outstanding issues.
Mari said Indonesia was looking into the possibility of cooperation in the plantation, real estate as well as other services sectors.
Currently, she said, there were more Malaysian investments coming into Indonesia.
Meanwhile, Muhyiddin said the meeting has provided an effective mechanism for both countries to discuss ways to further enhance bilateral trade and investment ties, including intensifying private sector collaborations.
He said one of the important issues discussed was the review of the 1970 Border Trade Agreement.
“The ministers view that the agreement has to be streamlined and aligned with other bilateral agreements signed between Malaysia and Indonesia and where necessary to align it with the various Asean regional agreements,” he said.
Muhyiddin said both parties also agreed that the review be completed as soon as possible.
He said Malaysia raised issues which had affected its exports to Indonesia.
These included the need for Indonesia to implement the Asean Cosmetics Directives, removal of the requirement for the pre-shipment inspection for selected ceramic products and to address regulations related to pharmaceutical imports into Indonesia.
The meeting also discussed and exchanged views on cooperation initiatives in the services sector.
In 2007, Indonesia was Malaysia`s ninth largest trading partner and accounted for 3.5 percent of Malaysia`s total trade.
Total trade between Indonesia and Malaysia in 2007 was valued at RM39.1 billion.
Source: http://www.nst.com.my (October 15, 2008)
