INDONESIAN EXPORTS TO RUSSIA GROW 60 PCT

Jakarta, Oct 23 (ANTARA) - Indonesia's exports to Russia in the last three years have fantastically recorded an average increase by 60 percent, an Indonesian diplomat said.

"The upward trend in Indonesia's exports over the past three years has reached 60 percent," Indonesia's Trade Attache for Russia Mumpuni Lelono Muljo said here on Thursday.
He said that Indonesia's exports to Russia in 2007 stood at US$252 million dollars while in the January-June 2008 period it was recorded at US$218.2 million.
Muljo said that Russia was a potential country for Indonesia to shift its exports from traditional export destinations such as the United States and European Union.
He said that Indonesia's goods entering Russia included garment and footwear and other primary products such cocoa.
The trade attache however admitted that there were constraints that had also to be overcome, particularly for new Indonesian exporters who wanted to enter the former communist giant.
"The payment system always serve as a barrier because Russian importers usually are not available with a high L/C premium charge. Therefore, most of them prefer cash payment or payment through bank transfers," he said.
Muljo said that such a payment system often posed difficulties for Indonesian exporters who had trade transactions with Russion for the first time.