Jakarta (ANTARA News) - State Enterprises Minister Dahlan Iskan has encouraged Indonesian state firms to expand their business in Papua New Guinea by cooperating with local companies.

"Not only will the cooperation forge relations between the two neighboring countries but also enable the state firms to expand their businesses in Papua New Guinea," he said after receiving a Papua New Guinean business delegation led by Prime Minister Peter Charles Paire here on Tuesday.

Dahlah was during the meeting accompanied by president directors of state oil and gas company PT Pertamina, state telecommunications operator PT Telekomunikasi Indonesia Tbk, state power utility PT PLN, and national flag carrier PT Garuda Indonesia.

As part of business expansion plan, Garuda Indonesia will open a new flight route, PLN will supply electrical power, Pertamina will engage in petrochemical industry and PT Telkom will explore the possibility of developing telecommunication services in the neighboring country.

But Dahlan declined to elaborate on the business expansion plans by the four state firms. "We have not arrived at details of cooperation because we have just met with them," he said.

He expressed his belief the cooperation with Papua New Guinean companies will have good prospects since the neighboring country had average annual growth of 9 percent over the past few years.

"Given the high growth, Papua New Guinea, with a population of 7 million, gives a chance to Indonesian state firms to expand their business in the country," he said.

According to the Central Statistics Agency (BPS), trade between Indonesia and Papua New Guinea reached US$256.5 million in 2012, down from US$443.4 million a year earlier.

(T.Royke Sinaga/Uu.S012/A014)

Editor: Priyambodo RH
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