Iraq: Indonesian businesses not yet optimally benefit from "oil for food" program

The Iraqi government expects that Indonesian businesses improve their participation in the tendering of projects in the UN's sponsored oil for food programs, in which Iraqi would sell crude to buy food and medicines.

Iraqi Vice President Toha Yasen Ramadan said that the participation of Indonesian businesses in the oil for food program had not been optimal, as many of the opportunities were taken by businesses from Russia and China.

"In fact, Iraq as a close friend of Indonesia expects more participation from Indonesian businesses in the program," Ramadan said when receiving legislators from the Indonesian Democratic Party of Struggle (PDI Perjuangan) over the weekend.

Indonesian delegation was led by Arifin Panigoro, head of the PDI Perjuangan faction - and also chairman of the Medco Group. Members of the delegation included legislators Sophan Sophiaan and Sabam Sirait. Also on hand at the meeting was Medco Group chief executive officer, Hilmi Panigoro.

Ramadan also hoped that Indonesian businesses also study possibility of investment in Iraq.

"Iraq has a great potential in the areas of oil industry and agribusiness. Indonesian businesses could become Iraqi businesses' partners whenever the embargo is lifted. Therefore, it is high time to study business opportunities in Iraq," he said.

Iraq is the world's second largest producer of crude oil after Saudi Arabia.

Besides oil industry, Bisnis reported that Iraqi agribusiness was growing rapidly since the end of the Gulf War early 1990s. Iraqi had also rebuilt hotels, apartments and other building destroyed during the war.

Transportation and telecommunications, however, were in dire condition. It needs sometime to call Indonesia from Iraq. (*)