REPUBLIKA.CO.ID, JAKARTA -- Indonesia plans to build tire and instant noodle factories in Kazakhstan in a bid to expand trade to the Central Asian region.

"Agreements have been signed among the business players from the two countries to build car tire and instant noodle factories. Implementation of the agreement, however, will take time," Listyowati, the director for South and Central Asia said at the Forum of Foreign Policy Studies, here on Wednesday (8/4).

The Forum with theme of Indonesian Economic Diplomacy in Central Asia was held ahead of a World Economic Forum (WEF) to be held in Jakarta from 19 to 21 April.

Listyowati said rubber products are among the main commodities to be promoted in the Central Asian market especially in Kazakhstan.

She said the investment in instant noodle factory has good prospect as Kazakhstan is major producer of wheat grain, the main basic material for instant noodle.

In addition to car tire and instant noodle Indonesia also hopes to boost exports of pharmaceuticals, textiles, spices, automotive spare parts and steel products to that country.

The planned investment in Kazakhstan is expected to serve as a stepping stone for expansion to non traditional markets, in that regions including Azerbaijan, Kazakhstan, Kyrgyzstan , Tajikistan, Turkmenistan and Uzbekistan.

Indonesian trade with countries in Central Asia was small and declined in 2010-2014.

Trade with Kazakhstan fell 3.42 percent with Kyrgyzstan contracted 23.17 percent, with Tajikistan shrank 43.65 percent and with Turkmenistan dropped 43.65 percent.

An increase was recorded only in trade with Azerbaijan up 21.84 percent and with Uzbekistan rising 16.26 percent in the same period.

High cost of logistics and transport to those countries was the main reason for the small involvement in the country is investment in that region.

In addition there is limited information about economic potential between Indonesia and those countries, high tariff barriers and currencies not convertible of those countries.

Meanwhile , Indonesia hopes to promote its economic potential at the World Economic Forum (WEF) to be held here from April 19 to 21.

Trade Minister Rachmat Gobel said the government want to use the opportunity to to attract more foreign investment into the country.

"We want to make use of the even to convince world business leaders that Indonesia is a potential place for investment," the minister said earlier.

He said the WEF will also be used to promote the vision of the government in front of the foreign delegates.

"They would certainly want to know about the vision of the new government," he said.

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