IABC counselor Sabam Siagian, who is also a former Indonesian ambassador to Australia, said the establishment of the business council in Yogyakarta was expected to encourage medium enterprises in the region to be more export oriented.

"That way, they don't need to compete with cheap handicraft producers," Sabam said in his speech at the launching ceremony, as quoted by local daily Kedaulatan Rakyat.

He also warned that entering the Australian market would not be easy and businesses would need to be well informed and persistent.

The Indonesia-Australia relationship, according to Sabam, has strategic value for both countries. With a population of 20 million, he said, Australia is a modern country that has well-founded information and technology networks with other Western countries.

"This will benefit Indonesia as it will push Indonesia to aspire to the same level as other modern countries," he said.

The presence of IABC, he went on, is basically aimed at creating mutually beneficial cooperation and support between the two countries. Australia, in this case, needs to ensure that Indonesia keeps developing and is secure that the created geo-political condition will as well bring in comfort.

The IABC launch on Saturday was marked with the pinning of IABC pins on the initiators of IABC's Yogyakarta Branch, George Iwan Marantika, GKR Pembayun, Eddy Poerjanto, Elena Williams and Walter Kempinski by IABC president S.D. Darmono and vice president Peter Fanning.

A memorandum of understanding (MoU) was also signed during the ceremony between the newly launched council with PT Taman Wisata Candi Borobudur, Prambanan and Ratu Boko, the management company of the noted tourist attractions Borobudur, Prambanan and Ratu Boko Temples.

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