www.belarus-economy.by FOREIGN ECONOMIC TIES FOREIGN ECONOMIC TIES No. 2, 2014 2, No. Geography of Belarus’ Interests: Indonesia Indonesia, the biggest country in Southeast Asia, is largely focused on cooperation with its closest neighbors and ECONOMY OF BELARUS OF BELARUS ECONOMY ASEAN partners. Nevertheless, Belarus-Indonesia trade that skyrocketed from $1.8 million in 1995 to $130 million in 2013 demonstrates that Minsk and Jakarta have managed to find common areas of interest. What are the niches of the Indonesian economy where Belarusian companies have managed to consolidate their positions? What reputation do Belarusian scientists have in Southeast Asia? These questions were addressed by the Economy of Belarus Magazine to Ambassador Extraordinary and Plenipotentiary of Belarus to Indonesia Vladimir Lopato-ZAgorSky who also represents Belarus’ interests in Malaysia, Australia, Singapore and the Philippines: 62 FOREIGN ECONOMIC TIES www.belarus-economy.by It might seem that there are I have mentioned just one buyer In Q1 2014 alone, Belarus exported no preconditions for any signifi- of Belarusian potash fertilizers. tires worth $2.5 million to Indone- cant increase in Belarus-Indonesia However, Belarusian Potash Com- sia, which amounted to 94% of the trade because of the great distance pany and the Embassy are in talks total supplies in 2013. between the two countries and Indo- with other Indonesian companies, Given the declining demand 2014 2, No. nesia’s well-established trade and too. for heavy-duty tires caused by the economic ties with other Southeast downturn in the mining industry of Asian countries, and with China, Intensive development of Indonesia, Belarus has been diversi- Japan, South Korea and the United agriculture and mining generate fying the supplies with trucks and States. However, in reality the situ- demand for machinery and equip- passenger cars tires. ation is absolutely different. The ment. Does Indonesia import We believe that there are also economies of Belarus and Indonesia Belarusian machines? good prospects for promotion of are complementary. Vigorous trade products made by MAZ, Amkodor, in certain commodities benefits The company PT Belarus Trac- Scientific and Production Associa- both Belarus and Indonesia. tor Indonesia was registered by PT tion “Center”, Minsk Bearing Plant The rapidly growing popula- Kobexindo Tractors in March 2013 and other Belarusian enterprises. tion prompts the Indonesian gov- with a view to promoting MTZ trac- ernment to give a greater focus to tors on the Indonesian market. In You mentioned that the agriculture and production of food- January 2014, the first batch of six demand for food has been grow- stuffs. As agricultural land is rather Belarus-892.2 tractors was delivered ing in Indonesia, where popula- OF BELARUS ECONOMY scarce in Indonesia, the country has to PT Belarus Tractor Indonesia. In tion has exceeded 250 million. no other option but to increase the line with the memorandum signed What can Belarusian manufac- crop yield on the available land. The by MTZ and PT Belarus Tractor turers offer here? government has announced plans Indonesia, 250 tractors are to be to channel $1.72 billion to subsidize shipped to Indonesia in 2014-2015. Now work is under way to start the purchase of fertilizers for farm- The sale of BelAZ dump trucks supplying food products to Indone- ers in 2014. in Indonesia is another promising sia. For example, we are negotiating Naturally, Jakarta completely cooperation avenue. Potential buy- a contract with a large Indonesian understands our efforts to promote ers include companies involved in company Indofood on the supply potash fertilizers on the Indonesian mining and cement production, as of milk powder. The export of this market. They also know that potash well as big engineering companies product in the current year can fertilizers are Belarus’ major export running large-scale infrastructure reach 8,000 tonnes. commodity to Indonesia. Indonesia projects (construction of roads, In January 2014, the Ulama reduced the overall import of pot- electric power plants, etc.). Council of Indonesia issued halal ash fertilizers by 33.8% in 2013, as With a view to securing a foot- certificates for six Belarusian dairy the country purchased too much hold on the ASEAN markets (includ- plants, which is the requirement for of this commodity in the previous ing Indonesia), BelAZ registered the the export of dairy products to that years. Nevertheless, in 2013 the sup- trading house Belazia in Singapore country. plies of Belarusian potash fertiliz- in December 2011. Belarus, in turn, welcomes ers rose 1.2 times compared to 2012 I would like to note that Indo- direct delivery of traditional Indo- (from $70.3 million or 169,600 tonnes nesia reduced the import of dump nesian goods such as natural rub- to $86.7 million or 255,100 tonnes). trucks by 25.7% in 2012 and by 88.4% ber, seafood, palm oil, coffee, spices, In the first quarter of 2014, the in 2013. It was due to the production tobacco, and others. export of Belarusian potash fertiliz- decline in the mining industry, in ers to Indonesia already rose more particular, crisis in coal production Are Indonesian businessmen than 1.3 times compared to the same as a result of the falling prices for interested in investing in Bela- period in 2013. coal on the global market. Neverthe- rus? In February 2014 Belarusian less BelAZ shipped nine 45-tonne Potash Company won the tender dump trucks to Indonesia over these Given the volatility of the global to supply 250,000 tonnes of potash two years. BelAZ has plans to sign a economy Indonesia’s overseas fertilizers for Indonesia’s biggest contract to supply eight more dump investments are insignificant and producer of compound fertilizers trucks to this country in the near limited mostly to the nearby coun- PT Petrokimia Gresik. Due to this, future. tries, particularly Southeast Asia the export of Belarusian potash The advanced mining industry states. In addition, the Indonesian fertilizers to Indonesia in H1 2014 coupled with major infrastructure government is actively encouraging alone will be nearly as big as in the projects in Indonesia open up big domestic companies to invest in the entire 2013. The agreements reached prospects for the Belshina tire pro- national economy. All this makes it during the visit of PT Petrokimia ducer in that country. difficult to attract large-scale Indo- Gresik President Director Hidayat In 2007 Belshina opened the Bel- nesian investment to Belarus. Nyakman to Minsk suggest that tyre Asia trading house in Singa- Nevertheless, we constantly Belarus can count on the construc- pore, which handles, among other work with potential investors and tive cooperation with this company things, the supplies of Belshina at all meetings inform them about in the future. products to the Indonesian market. the advantages of investing in the 63 www.belarus-economy.by FOREIGN ECONOMIC TIES Republic of Belarus, stressing that we are a member state of the Cus- toms Union and the Single Eco- nomic Space of Belarus, Kazakh- No. 2, 2014 2, No. stan and Russia. Some Indonesian companies are interested in the Belarusian economy, especially agriculture and the pharmaceutical industry. These avenues are already being explored. The Indonesian pharmaceutical giant PT Sanbe Farma said that for making the final decision on the investment in the Belarusian pharmaceutical industry the deci- sive factor will be the absence of the requirement to undergo additional registration for the products which will be made in Belarus in the other ECONOMY OF BELARUS OF BELARUS ECONOMY members of the Customs Union. Whether we manage to attract Indonesian investment into this sec- tor of the Belarusian economy will largely depend on the progress the Customs Union and the Single Eco- nomic Space will make in unifying the pharmaceutical market of Bela- cooperation with Belarus in erate with Belarusian scientists. rus, Russia and Kazakhstan. science and technology. When Our major goal is to translate these might the parties embark on joint plans into practice. Are Belarus and Indonesia projects? In 2014 the Australian National planning to develop cooperation University and the National Acad- in the field of healthcare? Belarus and Indonesia are emy of Sciences of Belarus are actively developing contacts in sci- expected to sign the Agreement on Healthcare is a promising area ence and technology. In 2011 sci- Scientific Cooperation and Collab- of Belarusian-Indonesian coopera- tech cooperation was not even on oration in the Field of Scientific tion. At my meeting with the Indo- the bilateral agenda. However, well- Personnel Training. Together with nesian Health Minister Dr Nafsiah coordinated efforts of the State the Singaporean companies we are Mboi in October last year we dis- Committee on Science and Tech- studying the ways of commercializ- cussed the training of Indonesian nology of Belarus, the National ing Belarusian innovative solutions healthcare personnel in Belarus, Academy of Sciences and the in the production of solar cells, exchange of expertise, the supply Embassy have allowed us to reach porous filters and heat-resistant fib- of medical equipment. a new level of cooperation in a ers. Following the talks, the Belaru- very short period of time. Over the sian Healthcare Minister extended past two years we have concluded Belarus has been actively an invitation to Dr Nafsiah Mboi to three fundamental agreements in expanding its education exports visit our country. We hope that the the sci-tech sector, secured a regu- today. Are there chances for Bela- visit could be arranged this year or lar exchange of visits among the rusian educational services to be in early 2015, and the Indonesian heads of the key research estab- in demand in Indonesia? side will be able to familiarize them- lishments of the two countries. In selves with the achievements of the December 2013 Belarus and Indo- Indonesia is a country where Belarusian healthcare system.