Iraq, Indonesia to discuss oil for food trade

A business delegation from Iraq is due to arrive in Jakarta on July 15, to discuss the implementation of barter trade between the two countries to benefit from the United Nations' oil for food program for Iraq, according to an executive at the Indonesian-Iraq Economic Commission.

The chairman of Joint Commission Task Force Iraq, Muchrim Hakim, said that in that meeting it would be discussed the possibility for Indonesia to import crude oil from Iraq and export seven commodities from Indonesia to Iraq.

He said Indonesia had agreed to buy Iraq crude oil worth $25 million, while Iraq had agreed to buy six Indonesian commodities including tea, spices and drugs, with export value of $30 million.

Muchrim, also chairman of the Indonesian Chamber of Commerce and Industry's Middle East and Islamic Countries commission, said he expected that the barter deal between Iraq and Indonesia could reach US$500 per semester, starting June 2000.

To reach the target, Muchrim said, the Joint Task Force would gather as many businessmen possible to supply the needed commodities.

"But the commodities must meet all the criteria, including quality and prices," he said.

Indonesia is among 15 countries supplying food and drug products to Iraq under the UN's oil for food program. Indonesia ranks 12 in terms of trading value with Iraq under the UN auspices. Other countries supplying food and drugs to Iraq include China and Russia.

Muchrim also revealed that a business mission from Oman are also due to arrive in Jakarta in the first week of July. Oman businessmen in the mission include those working on wood, plastics, and oil sectors. (*)