REPUBLIKA.CO.ID, JAKARTA -- Indonesian Trade Minister Enggartiasto Lukita is on a three-day visit to Russia to follow up on a plan to barter natural rubber for Sukhoi SU-35 fighter aircraft.
During his stay in Russia on Aug 3-5, the Indonesian minister will hold talks with Sukhoi SU-35 maker Rostec to pave the way for the rubber-for-fighter aircraft barter.
The Indonesian government will also offer other commodities to Rostec as Indonesia's partner in the barter scheme.
"The plan for the barter has almost been finalized. However, we still offer other Indonesian products apart from rubber to Russia in line with the country's request," Lukita said in a press statement released on Thursday.
Both the Indonesian and Russian governments have expressed interest in carrying out the barter trade.
The trade minister's visit to Russia is also aimed at expediting the creation of the Preferential Trade Agreement and Free Trade Agreement between both countries as part of the efforts to encourage balanced trade with Russia and other Eurasian countries.
Also read: Indonesia plans to buy Sukhoi SU-35
Indonesia views Russia as playing an important role in its foreign trade. Russia is also a gateway for Indonesian products to the Eurasian Economic Union zone comprising Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan.
In addition, Russia is the largest non-traditional market for Indonesian goods and services in Central and Eastern Europe.
Last year, trade between Indonesia and Russia had reached US$2.11 billion, with Indonesia enjoying a surplus of $411 million. The trade recorded an increase as compared to $1.9 billion a year earlier.
Indonesia's non-oil/non-gas exports to Russia grew 8.6 percent in the past five years, with a value of $1.3 billion recorded in 2016.
In the first five months of 2017, trade between the two countries surged 54.43 percent to $1.12 billion as compared to the same period last year.
Indonesia's exports to Russia include palm oil and its derivatives, coffee, rubber, and cacao.
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