RI, MYANMAR AGREE TO DEVELOP DIRECT TRADE TIES

Jakarta, March 17 (ANTARA) - Indonesia and Myanmar have agreed to develop direct trade to promote economic cooperation between the two countries, Indonesian deputy ambassador to Myanmar Gopokson Situmorang said here on Monday.

He said his office had approached Myanmar's central bank and airline to explore the possibility of establishing a direct banking links and flights between Indonesia and Myanmar.
"We are exploring a direct banking and direct transport between Indonesia and Myanmar," he said after attending a meeting between the Indonesian Chamber of Commerce and Industry (Kadin) and a visiting Myanmarese delegation.
So far trade between the two countries is carried out through Singapore. "Shipping of goods is also done through Singapore while if it is done directly, for example, from Sabang (Aceh), the route will be closer and the cost will also be less," he said.
He said he hoped the Myanmarese central bank could connect Indonesian banks with Myanmar Economic Bank (MEB), Myanmar Foreigh Trade Bank (MFTB) and Myanmar Investment and Commercial Bank (MICB) to serve import and export transactions.
"We are just exploring it. If it can be done directly no commission will have to be paid. Under the current system our goods become more expensive," he said.
Kadin's committee chairman for Cambodia, Laos, Myanmar and Vietnam, Juan Gondokusumo, meanwhile said that the main obstacle hindering the development of trade relations with Myanmar was the use of indirect system of payment for the trade.
"They do not use US dollars and so it poses a problem in transactions. To open a letter of credit a third party namely Singapore is also needed," he said.
He hoped the government would immediately seek a way to facilitate trade and economic relations between the two countries.
Kadin and Myanmar's Chamber of Commerce and Industry are currently preparing a draft memorandum of understanding to improve the relations between the two countries in the field of economy.
"We are going to jointly make a memorandum of understanding on everything we are going to improve," he said.
Myo Oo, deputy to the director general of Myanmar's trade department, admited that banking still posed a problem hindering the development of trade relations between the two countries.
"Because of US sanctions we cannot conduct transactions in US dollars and so we use Euro or other currencies such as Singapore Dollar. We wish to try to trade in Euro like what we have done with other countries," he said.
He said that Indonesia remained one of his country's 10 biggest trade partners after Thailand, India, China, Japan, Singapore, South Korea and Malaysia.
In view of that his side had agreed to cooperate with Indonesia to promote growth of trade between the two countries. "However we are now still seeking the right sector for development. (We are still considering) whether it is agriculture or if Indonesia would still import rice," he said.
He said Indonesia had so far imported green peas and onions from Myanmar through Malaysia. Oo hoped exports and imports between the two countries could later be carried out directly.
"Myanmar's main exports to Indonesia are green peas totaling around 20,000 tons a year. Now we also wish to include onions and therefore we wish to conduct direct relations with our buyers in Indonesia," he said.
The total value of trade between the two countries in 2007 was recorded at US$292.8 million, increasing 86 percent from 2006 totalling US$157.4 million. From January to November 2008 the value of trade between the two countries reached US$269.6 million.
Indonesia has so far enjoyed a surplus in its trade with Myanmar. Indonesia's exports to Myanmar in 2007 reached US$262.4 million while its imports from that country were recorded at US$30.4 million.
Indonesia exports among others oil and gas, palmoil, cigarettes, sarongs and herbal medicines to Myanmar while it imports among other things, peas, onions, beans and fishery products from that country.