NEWS FOCUS: RI, SWITZERLAND STEPPING UP ECONOMIC TIES BY ANDI ABDUSSALAM

Jakarta, July 7 (ANTARA) - Indonesia and Switzerland are moving forward to building closer relations and cooperation in the fields of economy, trade, investment and development with the current four-day official visit of Swiss President Doris Leuthard who arrived in Indonesia on Tuesday.

In order to foster the two countries' 58 year-old relations, President Leuthard, will have a series of meetings with President Susilo Bambang Yudhoyono and other Indonesian officials as well as attend a business forum on the competitive power of Indonesian and Swiss businessmen.

According to the Indonesian president's spokesman, Dino Patti Djalal, Leuthard will also meet officials of the Indonesian Chamber of Commerce and Industry (Kadin), and visit the International Labor Organization (ILO) project in Jakarta, meet with and attend a lunch with the secretary general of the Association of Southeast Asian Nations (Asean), Surin Pitsuwan.

Both countries last year established economic cooperation through an economic and trade commission. Through the Joint Economic and Trade Commission (JETC) on November 26, 2009, Indonesia has been named a priority country for strategic partnership with Switzerland in the development of economic and development cooperation.

Indonesia so far is still suffering from a deficit in its trade balance with Switzerland.

"Our trade balance is in favor of the Swiss country because we are importing capital goods, while our exports are raw materials whose values are lower," Head of Research and Development of the Ministry of Trade Muchtar said after attending an Indonesia-Switzerland business forum on Tuesday.

The business forum was attended by a Swiss delegation comprising businessmen from various sectors led by the President of the Swiss Confederation, Doris Leuthard.

According to data of the Ministry of Trade, Indonesia's trade deficit with Switzerland in 2006 stood at US$70.4 million. It dropped to US$40.5 million in 2007 but drastically in creased to US$141.1 million in 2008.

In 2009, Indonesia's trade balance with that country also experienced a deficit of 259.2 million U.S. dollars.

During the January-March 2010 period the country's balance of trade with Switzerland still suffered a deficit of 57.8 million U.S. dollars, which were larger than its trade balance deficit in the same period in 2009 which stood at 54.5 million U.S. dollars.

The condition has happened not because Indonesia was not able to balance Swiss trade, but because the value of Indonesia's main export commodity products is smaller than the value that of Swiss export products to Indonesia.

The volumes of their two-way trade have been fluctuated since 2007. The volume of trade between the two countries in 2007-2008 rose 47.09 percent to US$983.9 million. It dropped 38.43 percent in 2009 to US$621.5 million.

Indonesia's main exports to Switzerland are essential oil, garments, shoes, electronic products, furniture, oil, coffee, tea, spices, and vegetables, tin, plastic and plastic products.

Switzerland's main exports to Indonesia meanwhile are electricity generator parts, pharmaceutical, chemical and cosmetic products and high-end products.

Muchtar said Indonesia still could increase its exports to Switzerland to step up their values.

In the meantime, the Swiss investment in Indonesia is ranked 15th between 1990-2009 totaling US$740.7 million in 120 projects including 36 new projects in the period between 2005 and 2010 worth US$313 million.

Swiss investment is found in food, chemical and pharmaceutical industries, shipping, plantations, hotels, drinking water project and engineering. The Swiss government also participates in the development of power plants in cooperation with the Asia Development Bank.

There are around 75 Swiss companies currently operating in Indonesia such as ABB, Ades, Credit Suisse, Nestle, Novartis, Panalpina, Roche, Holcim and UBS providing employment to more than 59,000 people.

On Tuesday, Indonesia in cooperation with Switzerland launched a Sustaining Competitive and Responsible Enterprises (SCORE) program. Sofyan Wanandi, the chairman of the Indonesian Employers' Association (APINDO), said the program was initiated to help small and medium businesses in the country improve their quality and productivity, working conditions, reduce environmental impacts and increase collaboration and communication between employers and workers.

"I think we must support the program because it is very important and needed by small and medium businesses in Indonesia. Small and medium businesses must increase their productivity, efficiency, competitive power and cooperation between employers and workers in the framework of creating better working conditions. SCORE could help small businesses in Indonesia compete in national and international markets," he said.

Indonesia is one of the seven countries that have chosen to implement the SCORE project. The other countries include China, Columbia, Ghana, India, Vietnam and South Africa. In Indonesia the program has been started in the spare parts sector and would soon cover two other business sectors.

The joint commitment was signed by representatives from workers' unions and the employers' association, witnessed by the president of the Swiss Confederation, Doris Leuthard and Indonesian Manpower Minister Muhaimin Iskandar.

Dino said the visit of President Leuthard this time not only reflected the two countries' good bilateral relations but also as part of efforts to increase the friendship and cooperation that have been developed for the past 58 years.

The good relations between Indonesia and Switzerland were also marked by visits by the two countries' leaders such as in January 2000 by late President Abdurrahman Wahid and in February 2007 to Indonesia by Swiss President Calmy Rey.