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Turkish Minister: Trade with Indonesia has $10 billion potential

Jakarta, Indonesia | July 06, 2009 by D-8 Secretariat

Çağlayan is optimistic that the target to increase the trade volume to $5 billion in three years and $10 billion in five years can be reached

Çağlayan is optimistic that the target to increase the trade volume to $5 billion in three years and $10 billion in five years can be reached

Turkish Foreign Trade Minister Zafer Çağlayan has said the primary reason for the low volume of trade between Indonesia and Turkey is a lack of sufficient recognition of one another and claimed that the trade volume would be $10 billion instead of its current level of $1.7 billion if the two nations knew each other better.

Speaking at the opening ceremony of the Indonesia-Turkey Business Forum in the Indonesian capital of Jakarta on Monday last week, the minister delineated the reasons for weak commercial relations between the two countries and suggested ways to improve them to reach the highest potential. Çağlayan said it would be as easy as falling off a log to increase the trade volume to $5 billion in three years and $10 billion in five years, if both countries really commit themselves to this end.

His speech also dealt with Indonesia’s attempts to improve its economy. “The welfare of the Indonesian nation will improve so long as the country keeps taking steps toward more liberalization,” the Turkish minister said, adding that Turkey poses a good example for this since it has managed to more than quadruple its exports to $132 billion in just six years.

He also praised the Indonesian economy for its ability to continue growing amid the ongoing global financial crisis, in which a majority of economies worldwide suffered deep recessions.

Çağlayan underlined Turkey’s attempts to diversify its trade relations with alternative markets, rather than ratcheting up most of its focus in European markets. In that sense, the minister noted, countries in the Asia-Pacific region are as significant to Turkey as its neighboring and nearby countries.

The minister also called on Indonesian businessmen to utilize investment opportunities presented by Turkey, especially in the energy business. Turkey plans to spend $130 billion in nuclear power and renewable energy resources in the next 10 years. Çağlayan reiterated his invitation to invest in Turkey, as he does virtually everywhere he goes and at almost all international business meetings he attends.

The minister further provided detailed information pertaining to the investment environment in Turkey, especially mentioning the conveniences and incentives introduced in the Turkish government’s most recent stimulus and incentive packages.

Turkey imports palm oil and rubber from Indonesia while selling primarily flour and iron and steel products. The minister asked the organizers of the forum to create a platform in the next Turkey-Indonesia Joint Economic Committee meeting, which is scheduled to take place in Indonesia in 2010. “Let this platform be an environment in which businessmen from both nations can conduct bilateral business talks and take concrete steps to crystallize business deals and partnerships,” he said.

After the speeches, a deal for the sale of $17.5 million worth of iron and steel was signed between the Turkish importer/exporter Promex and Indonesian officials.

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