Chile, which boasts a market-oriented economy with strong financial institutions and sound policies, is seeking a free trade agreement (FTA) with Indonesia, the Chilean ambassador to Indonesia said.

PEDRO SUCKEL: (JP/Veeramalla Anjaiah)

"It depends on Indonesia. If Indonesia wants, we are ready to have a free trade agreement," Pedro Suckel told The Jakarta Post recently in an interview at his office in Jakarta.

A staunch supporter of trade liberalization, Chile has signed more bilateral and regional trade agreements than any other country in the world. To date, it has signed at least 57 such agreements with various countries and regions.

"We have signed FTAs with China, Japan and South Korea, and Indonesia can follow suit if the government wants it," Suckel said.

International trade is a key component of the US$231 billion Chilean economy.

"We live from foreign commerce. So my main mission is to increase our trade with Indonesia," Suckel, who came to Indonesia 10 months ago, said.

Bilateral trade between Chile and Indonesia has grown constantly since 2003, more than doubling within this period (see graphic). In the first two months of 2008, bilateral trade jumped to $61.05 million, a 59.11 percent increase from the $38.37 million recorded during the same period last year.

Indonesia exports mainly coal, natural rubber, electric accumulators, cotton yarn, woven synthetic fabric and footwear to Chile, and imports refined copper, iron ore, chemical wood pulp, fish meal, coin blanks and fertilizer.

"Recently, we added wine and soccer players to our export list," Suckel said.

Chilean wines are growing in popularity in Indonesia, and several Chilean soccer players now ply their trade in the domestic soccer league.

Chile, Suckel said, wanted to import liquefied natural gas (LNG) and more coal from Indonesia.

But he said it would take time to increase the level of existing trade, with the biggest hurdle being the geographical distance between the two countries.

"I am optimistic because both countries have enormous potential," he said, adding much depended on business players from both countries.

"We are here to provide all the information and arrange meetings between business players."

On the investment front, Chilean pension funds last year bought $250 million in Indonesian government bonds.

Suckel said all aspects of the relationship were experiencing growth.

"We have very good relations with Indonesia. They are steadily growing in all areas," Suckel said.

Indonesian President Susilo Bambang Yudhoyono and former president Abdurrahman Wahid both visited Chile, in 2004 and 2002 respectively, in a bid to strengthen ties, while former Chilean president Ricardo Lagos made a working visit to Bali in 2002 and a state visit to Jakarta in 2004.

The soft-spoken Suckel is one of the most active diplomats in Jakarta, and one of the most experienced diplomats in the Chilean Foreign Ministry.

Suckel, who has a master's degree in international relations, joined the foreign service in 1970.

During his 38 years in the diplomatic corps, the 62-year-old Suckel has worked in Chilean missions in Peru, Argentina, the United States, Colombia, Mexico, the Czech Republic, Hong Kong and Macau.

Before his posting in Indonesia, Suckel was the Chilean consul general for Hong Kong and Macau. He praised Indonesia for its rich culture and friendly people.

"Indonesia is so rich in cultural diversity, with so many religions, languages and cultures," he said.

"Here, people are very friendly. I like Indonesia."

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