TODAY.AZ / Business

Azerbaijan to become export gateway for Indonesian products to European market

24 May 2016 [18:00] - TODAY.AZ

/By Azernews/

By Fatma Babayeva

Azerbaijan can become export gateway for the Indonesian products to the European market, a representative from Indonesian Ministry of Trade Saleh Husin told Indonesian Republica newspaper on May 24.

Husin noted that featured products of Indonesia such as palm oil can be shipped to the Eastern European market via Azerbaijan.

Until now, Azerbaijan imported Indonesian products from third countries such as United Arab Emirates, said Tamerlan Karayev, Azerbaijan's Ambassador to Indonesia, emphasizing that direct imports will reduce the cost of the Indonesian products in Azerbaijan and boost trade between these countries.

According to the ambassador, Azerbaijan and Indonesia could implement a project together in the form of a joint venture.

Indonesia can export semi-finished products to Azerbaijan, and then process them into the finished products. Thus, the products can be exported to other countries, such as Russia, Georgia, and Iran, said Karayev.

He further noted that a joint venture is possible as Indonesia has advanced technology in various fields, such as textiles and furniture.

Indonesian Trade Minister affirmed that Azerbaijan and Indonesia will enhance bilateral cooperation, especially in the trade sector.

Azerbaijani government will bolster the cooperation between two countries in order to boost economic growth, said Karayev.

Indonesia is interested in developing ties with Azerbaijan. It should be a start point for both sides, said Husnan bey Fananie, Indonesian newly-appointed ambassador to the country recently

The ambassador highlighted the importance of arranging the reciprocal visits of representatives of small and medium business circles in terms of developing business relations between the two countries.

Azerbaijan is the third largest trade partner of Indonesia. The country is interested in making mutual investments with Azerbaijan in the oil and gas sphere.

Previously, the Indonesian government has encouraged the country’s state oil and gas company Pertamina to invest in Azerbaijan’s oil and gas projects. Indonesia has been importing crude oil directly from Azerbaijan since 2015, which opens up great opportunity for Pertamina to acquire stakes in oil and gas blocks of Azerbaijan.

In addition, Indonesia intends to increase the tourist flow with Azerbaijan.

The total volume of trade turnover between the two countries amounts to $497.7 million, about 96 percent of which accounts for the export operations, according to the data provided by Azerbaijan's State Customs Committee.

The trade balance is heavily in favor to Azerbaijan, as the trade volume mainly dominated by Indonesian imports of Azerbaijan's oil.

URL: http://www.today.az/news/business/151046.html

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