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Up and coming RI and Turkey enjoy mutual trade boom

The Turkish community in Indonesia is celebrating the 87th anniversary of the proclamation of the Republic of Turkey on Friday

The Jakarta Post
Fri, October 29, 2010

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Up and coming RI and Turkey enjoy mutual trade boom

T

he Turkish community in Indonesia is celebrating the 87th anniversary of the proclamation of the Republic of Turkey on Friday. Turkey, under AKP party rule since 2002, has not only regained lost influence but is also emerging as a new global power. It has a special relationship with Indonesia.

It took exactly 60 years for Indonesia and Turkey, two of the best faces of moderate Islam with democratic and secular credentials, to transform their friendship into a stronger partnership.

Though both countries established diplomatic relations in 1950, their mutual relationship did not initially blossom into a close partnership. But now this has changed dramatically, thanks to the recent and major political, economic and social transformations in both countries.

After the visit of President Susilo Bambang Yudhoyono to Turkey in June, both countries are now really enjoying a close relationship for the first time in their five-centuries-old relationship.

“Our ties date back to the 16th century. We must improve our partnership and cooperation,” Yudhoyono said in Ankara during his visit.

Turkish President Abdullah Gul will visit Indonesia next year to cement the ties further.

Foreign Ministry director general for European and American affairs Retno LP Marsudi said the President’s visit was a historical milestone for both countries.

“Both Indonesia and Turkey are two big emerging nations. Both are members of the G20. The President’s recent visit provided an important meaning to the growing bilateral relations,” she said Thursday.

When asked about the outcome of the visit, she said, it was a most successful dialogue with eight cooperation agreements signed during the trip. Around 800 Turkish businessmen attended a forum intended to boost cooperation between the business communities of both countries.

“We reached agreements on technical cooperation, industrial cooperation, small and medium-sized industries, culture and tourism, maritime transportation, manpower development, investment promotion and cooperation on news exchange,” Retno said.

The robust Turkish economy has been growing in the last seven years at an average rate of 7 percent, and its aggressive entrepreneurs have seen the huge economic potential in Southeast Asia’s largest economy. Ankara aggressively campaigns to increase economic links with Indonesia with a mix of frequent official, business and cultural visits. It also launched a direct flight between Jakarta and Istanbul.

The bilateral trade value jumped to US$2.08 billion in 2008, from $409.9 million in 2004. In the first seven months of this year, the bilateral trade value increased to $746.34 million from $692.73 in 2009 in the same period.

Turkey and Indonesia, Retno said, are aiming to reach an annual bilateral trade volume of $5 billion during the next five years.

Indonesia’s Coordinating Minister for the Economy Hatta Rajasa, who recently visited Turkey, said the new group would boost Turkish investments, which currently stood at $2 billion in Indonesia and
vice versa.

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