National

Kuningan Bombing Hampers Trade Relation between Indonesia-Australia
Sunday, 19 September, 2004 | 01:26 WIB

TEMPO Interactive, Jakarta:Not only has the bombing incident in front of Australian Embassy in Kuningan, South Jakarta, on Thursday (09/09) claimed lives and destroyed several buildings in one of the most important business areas in Jakarta, it has also caused some of investors, including those from Australia, loosing their confidence to invest in Indonesia.

Indonesia-Australia Business Cooperation Agency chairman Noke Kiroyan said that the bombing incident has hampered the bilateral trade relation between the two countries.

Kiroyan said that Australian business people have thought over and over before continuing their trade relation with Indonesia. It would impact on the decreasing trade volume of both countries.

Kiroyan said that this has certainly inflicted losses on Indonesia as within this last year, the trade volume between Indonesia and Australia has reached AUS$9 billion. Indonesia had trade surplus in amount of AUS$1 billion. “It means that our export value had reached AUS$5 billion and our import value had reached AUS$4 billion,” Kiroyan stated in Jakarta on Thursday (16/09).

Kiroyan added that several possible investors had to delay their investment plan in Indonesia as they considered the security situation in Indonesia was not conducive.

Indonesian Chamber of Commerce deputy chairman in Investment Sector Chris Kanter stated a similar concern. He said that the investors who had decided to delay their investment are new investors. They previously considered Indonesia as a suitable place to invest their money. “I hope the number of investors delaying their investment plan is small,” Kanter stated. “But, one thing for sure, this tragedy will lessen the incoming investment.”

On the other side, Kanter was convinced that the investors who have long established their business in Indonesia would not be affected by the terror acts. However, he added, it would require at least a year to recover the investors trust in Indonesia.

Kiroyan said that Australian business people were still waiting for further progress on the handling of this bombing case.

According to Kiroyan, this information on the case progress is very important. The trade relation between Indonesia and Australia will return to normal if the situation in Indonesia is considered conducive and quite safe. “This element of security and safety is very important. People are now worried to enter buildings because of the bombing.” (Muchamad Nafi-Tempo News Room)