RP, Indon to collaborate on trade, investment initiatives

The Philippines and Indonesia have agreed to collaborate on a number of significant trade and investment initiatives following their recent Fourth Joint Working Group meeting held in the Philippines.

The Philippines conveyed to Indonesia the interest of Philippine National Oil Corp.-Exploration Corp. (PNOC-EC) to invest in Indonesia coal mining companies.

Indonesia is the Philippines’ largest supplier of coal.

Aside from the possible investment, the Philippines is also asking Indonesia to supply about 650,000 tons of coal over the next six months starting March this year to some of National Power Corp.’s (Napocor) coal-fired power generating plants.

NPC indicated it would look into the possibility of having its Indonesia supplier of coal be exempted from its new procurement regulations so that the supplier can supply without delay NPC’s coal needs up to August.

Unfortunately, the Indonesia Ministry of Mining and Mineral Resources informed the Philippine panel that most Indonesian private coal mining firms have already committed their supply.

The Indonesian Government assured, however, that it would still look into the possibility of supplying the country’s coal requirements.

Aside from coal, both panels also arranged for the exchange of research visits, joint ventures, technology sharing and supply of planting materials in their respective areas of competence – coconut, shell/handicrafts, seaweed processing and oil palm processing.

The two countries also agreed to accelerate the development of a bilateral Mutual Recognition Agreement (MRA) on cosmetics products with the ASEAN Harmonized Cosmetic Regulatory Scheme as guide.

The MRA aims to facilitate trade and minimize misunderstandings about the acceptability of each others’ products through harmorization of product standards.

On pharmaceuticals, the two panels discussed possible supply arrangement whereby the Philippines would provide Indonesia with raw materials for the manufacture of gel-type capsules from carrageenan, while Indonesia would supply affordable medicines to Philippine government hospitals through parallel importation.