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Thailand, Indonesia to sign fishery, food, auto pact by 1st half

Dow Jones | Friday February 27th, 2009

Thailand, Indonesia To Sign Fishery, Food, Auto Pact By 1st Half

By Piyarat Setthasiriphaiboon, Dow Jones Newswires

HUA HIN, THAILAND -(Dow Jones)- Indonesia and Thailand expect to sign a bilateral agreement on the fishery, food and auto industries in the first half of this year, Thai Commerce Minister Porntiva Nagasai said Friday.

Thailand, which benefits from using Indonesia’s territorial waters for fishing, will encourage more investment in Indonesia. It will also urge domestic fishery companies to hire more local workers, Porntiva told reporters at a briefing.

Thailand will also ask Indonesia during negotiations to reconsider a new regulation that has cut down the number of shipping ports open to exporters to five from nine.

Under newly imposed rules, importers of 529 products, including electronic devices, clothes, toys, shoes, food and beverages, must also now ask for approval from Indonesia’s trade minister.

As two of Southeast Asia’s leading auto-parts exporters, Indonesia and Thailand will work together to help support the struggling sector.
Indonesian and Thai businessmen from the auto industry will discuss what government assistance they need amid the global economic downturn, which has affected big auto players across the globe, said Commerce Ministry spokesman Krisda Piampongsant.

"There may be a joint investment, and we may trim down what is not the core business for both parties," Krisda told reporters.

 source: Dow Jones