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Indonesia, Brazil strike cooperation deals as leaders meet / Photo: Yasuyoshi CHIBA - AFP
NYSE - LSE
Indonesia, Brazil strike cooperation deals as leaders meet
Indonesia and Brazil agreed to boost ties and struck a series of agreements on Thursday as their leaders met in Jakarta, with Southeast Asia's biggest economy looking to make further inroads into South American markets.
Brazilian President Luiz Inacio Lula da Silva was greeted by a marching band and national anthems at a ceremony at the presidential palace in Jakarta before talks with Indonesian counterpart Prabowo Subianto.
The pair witnessed the signing of agreements on oil, gas, electricity, technology, mining and agriculture, coming several months after US President Donald Trump imposed a tariff rate of 19 percent on imports from Indonesia under a new pact, and a 50-percent tariff on Brazilian products.
"How is it that two important countries in the world, such as Indonesia and Brazil, which together have a population of almost 500 million, only have a trade volume of $6 billion?" said Lula at a joint press conference after talks.
"This is not enough for Indonesia, and it is not enough for Brazil."
The Indonesian leader said both countries were working to establish a free trade agreement between the Southeast Asian powerhouse and the South American bloc Mercosur, which consists of Brazil, Argentina, Paraguay, Bolivia and Uruguay.
"I believe this will strengthen our relations and will make both of our economies and the economies of Latin America grow rapidly," Prabowo told Lula.
In the press conference Prabowo called both countries "two new economic powers that are rising" which must "increase trade".
Brazil has deepened relations with Southeast Asia in recent years, and Lula's participation at the Association of Southeast Asian Nations (ASEAN) summit in Malaysia that starts on Sunday -- the first by a Brazilian president –- marks the country’s growing political engagement in the region.
Brazil is also one of Indonesia's main trading partners in South America.
Total trade between the two nations between January and August was worth $4.3 billion, according to Statistics Indonesia data.
The Southeast Asian nation is looking to bolster ties in Latin America, and in August signed a trade agreement with Peru.
It also joined the BRICS bloc of major emerging economies, of which Brazil is a member, in January.
E.Nieto--HdM
