I

t seems Indonesia is too important for Ecuador to ignore. The small resource-rich South American state reopened its embassy recently after closing it down for more than two months.

"We are back in business. We reopened our embassy and now we are working normally," Ecuadoran Ambassador to Indonesia Rodrigo Yepes-Enriquez told The Jakarta Post in an exclusive interview last week at his office in Jakarta.

Ecuadoran President Rafael Correa decided to close down the embassy on Dec. 31, 2008, without citing any reason. There was speculation that Correa's rapid-fire decision had to do with the sudden cancellation of a visit by President Susilo Bambang Yudhoyono to Ecuador in November 2008.

"I can't speculate on the rumors. The visit was not cancelled but postponed. Our president also received a letter from Indonesia's State Secretariat to reopen the embassy. We have now decided to reopen it, that's all," Ambassador Yepes-Enriquez said.

Indonesian Foreign Ministry spokesman Teuku Faizasyah said Ecuador had not given specific reasons when they closed the embassy last year.

"They mentioned financial difficulties as among the reasons. There must be some consideration behind their decision to reopen the embassy," Faizasyah told the Post.

In an effort to strengthen the two countries' relations, Indonesia has moved a step further.

"Indonesia has also decided to open an embassy in Ecuador pending a review by the House of Representatives. This could be one of the reasons Ecuador decided to open its embassy again. Indonesia has its own interests in opening an embassy there, which include economic reasons," Faizasyah said.

Yepes-Enriquez agreed with Faizasyah.

"Being Southeast Asia's largest economy, Indonesia is an important country for us in this region. Moreover, both countries' oil companies have already completed negotiations on cooperation in the energy sector. They will soon sign an agreement regarding allocation of an oil contract to PT Pertamina (state oil and gas company) in Ecuador," he said.

Ecuador's trade with Indonesia has also growing rapidly in recent years.

"Our trade tripled in five years. But it was not that big. Moreover, we have to balance our trade by increasing our exports to Indonesia," Yepes-Enriquez said.

Bilateral trade surged to US$44.24 million in 2007, a huge jump from $13.18 million in 2003. Last year, it jumped further to $50.91 million in the first 11 months, a 29.07 percent increase from $39.44 percent in the same period in 2007.

According to Yepes-Enriquez, Ecuador also plans to award huge contracts to Indonesian companies like telecoms provider PT Telkom and aeronautical manufacturers PT Dirgantara.

Yepes-Enriquez said Ecuador was seeking close relations with Indonesia.