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Turkey seeks FTA with RI to boost trade ties: Envoy
With booming trade and growing interaction in political and cultural spheres, Turkey and Indonesia are not only drifting closer together but are also on the brink of following a more positive trajectory to signing an FTA and establishing a strategic partnership
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ith booming trade and growing interaction in political and cultural spheres, Turkey and Indonesia are not only drifting closer together but are also on the brink of following a more positive trajectory to signing an FTA and establishing a strategic partnership.
“Our relations with Indonesia have been progressing very well in all spheres,” Turkish Ambassador
to Indonesia Aydin Evirgen told The Jakarta Post in an interview just ahead of his country’s National Day, which will be celebrated on Thursday.
Aydin Evirgen: JP/Nurhayati
“We have historic links with Indonesia. Both countries share similar views on international issues.”
Turkey recognized Indonesia’s independence on Dec. 29, 1949, and established diplomatic relations in 1950. Since then, both Turkey and Indonesia have followed a more positive trajectory.
The relations may already be almost 60 years old, but a new turn in ties took place only in 2006, when Turkey appointed Evirgen as its ambassador to Indonesia, home to the largest Muslim population on Earth.
During his three years in Indonesia, Evirgen tried every trick in the book to boost bilateral trade, increase Turkish investments and promote Turkey as a major tourism destination.
“I’m very glad to see the rapid rise in our bilateral trade. But this growing trade is not commensurate with both countries’ economic potential,” said Evirgen, one of the most successful Turkish ambassadors to Indonesia.
Both Turkey and Indonesia are members of the G20 and regional powers in their respective regions. Both are Muslim-majority democracies.
In 2006, Turkey and Indonesia set a target of US$2 billion in bilateral trade by the end of 2008.
“We surpassed this target in 2008. Opportunities in Turkey and Indonesia are immense. Now we have a new target of $10 billion in trade by 2014. I am optimistic we can achieve this,” the ambassador said.
In 2008, bilateral trade surged to $2.08 billion, an impressive increase from $1.78 billion in 2007. Trade grew fivefold in five years, up from $409.90 million in 2004 (see graphic).
Turkey, Evirgen went on, mainly exports wheat flour, iron and steel products, tobacco, cotton and machinery to Indonesia, and imports palm oil, rubber, textiles, paper and pulp, windshields, tires and furniture from the archipelago.
Among the Turkish exports, wheat flour occupies the prominent place. Last year, it exported $118 million worth of flour to Indonesia.
As the trade grows rapidly, accusations of dumping are also emerging slowly. Some small importers of wheat flour have requested the Indonesian government impose anti-dumping duties on Turkish flour because it is much cheaper than in Turkey itself.
But Turkey rejects the dumping accusations.
“We have been exporting wheat flour to more than 50 countries. No country has ever imposed anti-dumping duties on Turkey’s wheat flour. I hope this matter will be resolved soon,” Evirgen said.
Over in Turkey, tire manufacturers have leveled anti-dumping charges against Indonesian companies.
“Surprisingly, these allegations were made by a small group of companies. If you see the total trade value of tire and windshield imports, it’s just $6 million,” Evirgen said.
The Turkish ambassador wants the dumping issue to not become a hurdle in the booming ties.
“Both countries must see the bigger picture of our future relations. These dumping allegations from both sides must be set aside in the larger interest of relations,” Evirgen said.
As for investment, Evirgen said, there is a growing interest in Turkish companies about investing in Indonesia.
“We already have 14 Turkish companies in Indonesia, mainly in the mining and manufacturing sectors. These companies already invested $70 million during the last three years. More and more companies from Turkey want to invest in Indonesia,” he said.
To promote bilateral trade, Evirgen is planning a Turkish exhibition for May next year.
“The purpose of this expo will be to introduce Turkish products to Indonesian businesspeople and vice versa,” Evirgen said.
In the tourism sector, the Turkish Embassy in Jakarta in 2008 issued 16,000 visas, an increase of 32 percent from 2007 figures, to Indonesian visitors. Around 10,000 Turkish tourists visited Indonesia last year.
“Every year, around 10 million Turkish tourists go abroad. We have a huge potential in the tourism sector,” Evirgen said.
To tap that potential, Turkish Airlines has launched a flight from Istanbul to Jakarta via Singapore.
Turkey is also looking to enhance cooperation in education.
“Every year we give 58 scholarships to Indonesian students.
This number grows every year,” Evirgen said.
In an effort to give a strategic dimension to the existing relations, Turkey plans to have a free trade agreement (FTA) with Southeast Asia’s largest economy as well as with the Association of Southeast Asian Nations (ASEAN).
“Indonesia is a very important partner for us. We would like to have an FTA with Indonesia and ASEAN,” Evirgen said.
“All these efforts are to move in the direction of establishing a strategic partnership between the two countries.”
