"Actually, the potential of bilateral trade and investment between the two countries is immense, but there is hesitation ," Boediono said here on Thursday, after meeting with Iranian Vice President Mohammad Reza Rahimi on the sidelines of the 16th Summit of the Non-Aligned Movement (NAM).
At the meeting, Rahimi expressed interest to step up cooperation with Indonesia in various fields.
Boediono noted that trade value between Indonesia and Iran was recorded at US$1.8 billion, "much lower than what Indonesia has with its neighbouring countries such as Malaysia, Singapore, and Thailand".
"Our potential is actually huge, but we are still lagging behind other ASEAN member countries," he added.
Boediono said the Western countries` sanctions against Iran posed a serious problem, but a solution was possible.
"But Indonesian businessmen need not be wary of doing business with Iranian companies, because trade cooperation between Iran and Malaysia or Thailand has been increasing despite the sanctions," he explained.
"Our businessmen might not take the initiative, so the government must help connect the two countries` businessmen," Boediono added.
According to data collected from the Indonesian embassy, trade value between Iran and Indonesia has been increasing and Indonesia has so far enjoyed a trade surplus. In 2009, however, bilateral trade between the two nations decreased due to the global economic crisis.
In 2011, Indonesia imported crude oil and beans from Iran and exported, among other things, palm oil, thread, textile materials, tires, automotive spare parts, rubber, chocolate powder, coffee, cartons, and wood.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2012
