Travel warning could harm Indonesia and Australia business

Thursday, 26 Jun, 2007 0

A Reuters report says that Indonesia has urged Australia to lift a travel advisory on the country, saying it could hamper commercial ties between the two countries at a time when they are trying to hammer out a free trade pact.

The Federal Government has cautioned Australians about travelling to Indonesia, including Bali, due to terrorist threats.

Indonesian Trade Minister Mari Pangestu has met his Australian counterpart, Warren Truss, to flag her concerns saying, “The travel advisory could disrupt travel not only for tourism but also potential investors and buyers”.

“We propose that Australia make a review based on progress that has happened in Indonesia.”

Mr Truss, who is in Jakarta for an annual bilateral trade and investment meeting, says the Australian Government has assured Indonesia it will review its travel advisory on a quarterly basis.

“Our warning has been revised and taken into account the improved security situation in Indonesia, and we will continue to do that,” Mr Truss said.

The Ministers were speaking as an Indonesian-Australia panel of experts recommended a feasibility study for a possible free trade agreement (FTA).

“That will be undertaken presumably jointly by governments and by experts, to help us assess what the potential benefits are from an FTA, what issues would need to be resolved, and whether or not we could actually progress to that formal negotiation stage,” Mr Truss said.

Dr Pangestu says an FTA with Australia would help Indonesia achieve its target of 6.3% economic growth this year.  “Australia is one of our closest neighbours.” “We see Australia as one of our import markets and potential investors in various sectors, not just mining”.

Indonesia has seen a string of bombings in recent years, including the 2002 Bali nightclub bombings that killed more than 200 people, including 88 Australians.

A Report by The Mole and Reuters



 

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John Alwyn-Jones



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