Singapore-Indonesia Trade Changes

Press, Volume CVIII, Issue 31586, 25 January 1968, Page 6

Singapore-Indonesia Trade Changes

(N.Z.P.A. -Reuter) SINGAPORE. The century-old trade pattern between Singapore and Indonesia has been changed to the mutual benefit of the two countries during the last year.

This has been done, according to Mr I. Hatta, head of the Trade Division in the Indonesian Embassy in Singapore, as part of -as country’s determined effort to stabilise her economy and place greater emphasis on production and export earnings. Indonesia and Singapore, trading partners since 1824, broke relations four years ago when Indonesia launched its confrontation campaign against the island republic and neighbouring Malaysia. Trade and diplomatic relations between the countries were restored in 1966 after the Sukarno regime was overthrown in Djakarta. Before the confrontation, the role of Singapore was mainly in the processing, upgrading and re-exporting or Indonesian raw materials for world markets. . Singapore is now mainly to supply Indonesia’s needs for manufactured products, according to Mr Hatta. This does not mean that Indonesian pnmary produce is barred from entry into Singapore. “Exports to Singapore are based on non-discrimination within the limit of the capability and interests of Indonesia,” says Mr Hatta. Several basic agreements on trade and shipping have been signed between the countries during the last 12 months and both sides have stated that there are no major obstacles to the development of trade. “With the way paved for

the reopening of trade between Indonesia and Singapore, there is no real obstacle, except that both sides still remain cautious,” says Mr Hatta. Starting with a hesitant 1,700,000 Singapore dollars (about £212.500) in September 1966, Singapore’s exports to Indonesia soared to 25,000,000 Singapore dollars (about £3,125,000) in September of this year. Total exports for the year ending in September amounted to 170,000,000 Singapore dollars (about £21,250,000) worth of goods ranging from primary products, such as foodstuffs and spare-parts, to textiles and luxury goods. Of these, 100,000,000 Singapore dollars (about £12,500,000) worth of goods were shipped on credit, while the balance was on a cash payment basis. Mr Hatta says that this amount may be considered rather small by comparison with exports to Indonesia in the pre-confrontation period. These amounted to 292,000,000 Singapore dollars (about £36,500,000) in 1962, and 291,000,000 Singapore dollars (about £36,375,000) in 1963. “Considering that old ties have been severed and that new ones have had to be established, this is quite encouraging,” Mr Hatta says. Indonesia’s exports to Singapore after the resumption of relations were estimated at 70,000,000 Singapore dollars (about £8,750,000), of which rubber was the most important commodity. “This figure is very encouraging considering that these export transactions only began in or about June, 1967,” says Mr Hatta.

“Much has been achieved within the period of a year, but there are still many unsettled issues ahead of us. Indonesian Economy “We hope that the efforts to put Indonesia back on a healthy economic basis will materialise. The co-operation shown by Singapore brings much hope that, in the notdistant future, Indonesia will be able to give many opportunities for conducting trade and the investment of capital, to the benefit of the Singa-pore-Indonesian trade relations.” Singapore’s Minister for Finance, Dr Goh Keng Swee, recently told Parliament that trade with Indonesia was progressing steadily to the mutual benefit of both countries. Dr Goh said that 40 industrial organisations and 18 shipping firms were affected by Indonesian confrontation. Seventeen of the shipping firms affected had resumed operations since confrontation ended and the other, with only one ship, had ceased operations. Eighteen of the 40 industrial organisations which closed during confrontation had not resumed operations, but new firms had been established, Dr Goh said. A new shipping firm and eight industrial organisations had been established in Singapore for trading with Indonesia.