ASEAN KEY DESTINATIONS
Sea links crucial to further Brunei-Indonesia trade
AN EFFECTIVE sea connectivity between Brunei and Indonesia is needed to expand trade between the two countries.
As there’s no direct sea link between Indonesia and the Sultanate, goods have to be pass through a third country before they arrive in Brunei or vice-versa, according to Rudhito Widagdo, minister counsellor of economy at the Indonesian Embassy in Brunei.
“But the question now, is that economically effective? Because going through a third party, it means that production cost will be higher resulting in the selling cost to be less competitive,” he told The Brunei Times.
The intention to address the issue has been expressed to the authorities of both countries, but Rudhito said it’s still unclear if such proposal will be implemented.
Rudhito said there’s lack of follow up on “too many” cooperation agreements signed between the two countries.
“The last one was for cooperation between chambers of commerce and industry and another one was on cooperation. We don’t want them to just be ceremonial. They have to be fulfilled. Bilateral relations are good, but what are they without the content?”, he said.
A Memorandum of Understanding was signed in February for the establishment of the Brunei Indonesia Business Council (BIBC).
The council will be responsible for the promotion of trade and investment activities between Brunei and Indonesia.
A task force has been created to set up the BIBC, which was expected to be established in May.
According to information from the Indonesian Embassy in Brunei, the task force is composed of the Brunei Darussalam National Chamber of Commerce & Industry (BDNCCI), Federation of Brunei Malay Enterpreneurs, Brunei Chinese Chamber of Commerce, International Chamber of Commerce & Industry, Women’s Business Council (WBC), ASEAN-Business Advisory Council, APEC Business Advisory Council, BIMP-EAGA Business Council, Riza Fudhlana Company, and A&A Management & Training Service.
The Brunei Times
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