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Minister of Trade signs textile trade deal with Somalia

21 Jan '10
4 min read

Minister of Commerce of Somalia, H.E. Abdirashid Mohamed Abdi, led the Somalia delegation, consisting of member of chamber of commerce and several businessmen, for a Working Visit to Indonesia from January 14th to 19th, 2010. The visit aimed at enhancing bilateral trade relations between Indonesia and Somalia as well as to follow up the meeting between Minister of Trade of Indonesia and Minister of Commerce of Somalia on April 6, 2009 in Dubai, United Arab Emirates.

Apart from having courtesy call to the Minister of Trade of Indonesia, Dr. Mari Pangestu, Minister Abdirashid Mohamed Abdi will also conduct technical meetings with relevant agencies of Indonesia and visit to central industries in several regions of Indonesia. The Somalia business people also attended a business meeting (one on one business) on 15th January 2010, with 40 Indonesian business people.

During the bilateral meeting, Minister of Commerce of Somalia conveys his wish that Indonesia could be part of the construction development in Somalia. There is a huge need for expertise and construction materials from Indonesia to Somalia. Somalia in turn, will give priority to Indonesia to supply its products with zero percent tariff duty for imported goods from Indonesia and also its service relating to this project. Indonesia welcomes the proposal and assured its competence. Minister Pangestu requested for details on the types of experts and construction materials needed by Somalia.

Somalia also proposes to establish cooperation in the field of processed industry. Within this cooperation scheme, Somalia will export raw material to Indonesia which will be processed in Indonesia to be re-exported to Somalia with a zero percent import duty. As for the early phase, this cooperation will start from textile and textile product. Indonesia welcomed the proposal and recommended to form a technical team whose members consist of both countries to further study it.

On the discussions of banking cooperation, both ministers considered that in order to provide payment facilities for their businessmen, it is important to establish banking cooperation. This cooperation is needed to reduce the risk of payment and delivery of goods arising from the direct payment system without using the Letter of Credit (L/C).

On the issue of visa, Minister Commerce of Somalia also hopes for expressed his eagerness to support the efficiency of visa documents treatment for Somalia businessmen who will visit Indonesia by visa on arrival. Indonesia informed Somalia on the matter that the calling visa will be valid for the businessmen, whereas the visa it will first be discussed on the clearing house forum. However, for certain conditions, Indonesia will be able to give visa on arrival which is valid for 1 week or 1 month.

In this occasion, the Minister of Trade of Indonesia also addressed about the success of PT Telehouse Engineering, an Indonesian telecommunication company, in exporting Mobile units and Transportable BTW to Hormuud Telecom Inc/Hortel, a Somalia telecommunication operator. In order to establish bilateral cooperation in the field of telecommunication, Minister of Trade of Indonesia requested support from Somalia to get priority and facilitation for Indonesian telecommunication companies in supplying telecommunication devices Somalia. Both Ministers considers that the total trade between the two countries, which was recorded in 2008 at US$ 3.1 million, still does not reflect the potential of both countries.

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