In a surprise move for many, the small, oil-rich South American state of Ecuador will next week permanently shut down its embassy in Jakarta.

"Yes, it's true. We will be closing down our embassy in Jakarta on Dec. 31. But we will stay for some time (longer) to move embassy assets and archives to our nearest mission," the embassy's Carlos Lenin Housse told The Jakarta Post early this week.

News of the closure has taken the capital's diplomatic circle by surprise, considering Ecuador only opened its embassy in Indonesia in May 2005. Prior to this, Ecuador's diplomatic mission in Tokyo covered its interests in Indonesia.

"For me, it's surprising news. Just last year (November 2007), Ecuadoran President Rafael Correa visited Indonesia to boost his country's relations with Indonesia. I don't understand why they are closing down the embassy," said one European diplomat, speaking on condition of anonymity.

Though speculation is rife about reasons for the closure, the Indonesian Foreign Ministry says the current financial crisis is one of the main reasons behind it.

Foreign Ministry spokesman Teuku Faizasyah said Ecuadoran Ambassador to Indonesia Rodrigo Yepes-Enriquez had met last week with Foreign Minister Hassan Wirayuda to explain the closing of the embassy.

"The financial crisis was cited as among the reasons, and we can fully understand this issue," Faizasyah told the Post.

"However, the closure will not interrupt bilateral relations between the two countries. We are committed to strengthening the ties despite the closing of the embassy."

Faizasyah would not elaborate on any other reason for the closure, including speculation Ecuador was irked by the cancellation of President Susilo Bambang Yudhoyono's trip to the country in November.

"We explained (the reason for) the cancellation fully at that time and we don't want to speculate on it," he said.

President Yudhoyono had been scheduled to visit Ecuador during his trip November this year to the region, which also took him to Peru, Brazil, the United States and Mexico. But he canceled the visit to Ecuador at the last minute and continued his tour of the other countries.

Ecuador opened its embassy in Jakarta in a bid to strengthen bilateral relations with Indonesia, with Indonesia expected to reciprocate by opening a mission in Quito. Indonesia reportedly promised Ecuador it would open an embassy there this year.

During the last five years, bilateral trade between Ecuador and Indonesia has tripled, from US$13.2 million in 2003 to $44.2 million in 2007. But this is still far below both countries' economic potential.

Both have also signed a memorandum of understanding on cooperation in 2007, under which Indonesian state oil and gas company PT Pertamina will conduct a study to develop the Oglan oil field and rehabilitate several oil wells in the equatorial state.

Popular

Bali flights canceled after Lewotobi Laki-laki volcano eruption

Early school a new burden

Many flights to Bali cancelled after East Nusa Tenggara volcano eruption