Indonesian construction firms are eager to break into Mongolia’s growing
economy, President Susilo Bambang Yudhoyono said during a visit to the state
palace in Ulan Bator.

Mongolia’s robust economic growth, which reached 6.4 percent in 2010 and 17.3
percent in 2011, coupled with its lack of development makes it a prime market
for Indonesia’s infrastructure companies, Yudhoyono said after meeting with
Mongolian President Tsakhia Elbergdorj on Thursday.

“During the bilateral meeting, I told the president that Indonesia has the
capability to develop [Mongolia’s} infrastructure,” Yudhoyono said in a joint
press conference after the meeting on Thursday. “We’ve worked on infrastructure
[projects] in Africa, Asia and the Middle East and we’re ready for
infrastructure development partnerships in Mongolia.”

The two nations agreed to establish a joint commission of government officials
and private companies to oversee potential projects, he said.

The head of Indonesia’s Investment Coordinating Board (BKPM), Chatib Basri, who
joined Yudhoyono in his visit, said his office signed on Thursday a new
agreement with Mongolian authorities expected to encourage investment
partnerships between the two countries.

“Indonesian businesses must tap foreign markets, including Mongolia. I hope our
participation this time will support the success of economic partnerships
between the two sides,” Chatib said.

Yudhoyono and Elbergdorj also agreed in their meeting to boost bilateral trade,
again citing untapped potential. Two-way trade between Indonesia and Mongolia
totaled $6 million last year, less than Mongolia’s two-way trade with other
Southeast Asian nations.

In the January-May period of the year, however, trade between Indonesia and
Mongolia reached $2.2 million, 54 percent higher than the same period last
year.

“I hope the figure will continue to increase,” Yudhoyono said.

The president explained that Mongolia was interested in palm oil and mineral
water from Indonesia, while Indonesia was interested in importing meat and
cattle.

Antara