The expo will be held at Jockey Plaza, the largest mall in Lima, Peru, from Sept. 9 to Sept. 12, 2004, director for South American and Caribbean affairs at the Ministry of Foreign Affairs Wardana told reporters on Thursday.

The expo will be jointly organized by the ministry, the Indonesian Embassy in Lima and the National Agency for Export Development (BPEN).

Separately, Indonesian Ambassador to Peru I Gusti Ngurah Swetj… said that bilateral trade between Indonesia and Peru had been increasing over the past few years with Indonesian exports reaching US$32.76 million as of October last year, compared to $31.5 million in 2002.

Indonesia booked a surplus of $4.6 million in 2002.

Indonesia's main exports to Peru are radio tape recorders, printers, natural rubber, textiles and garments, while Indonesia only buys fishmeal from the nation, according to the ambassador.

He said Peru could also be a potential market for Indonesian cigarettes, car batteries and jewelry.

"We are now the sixth largest trading partner of Peru in Asia, after China, Japan, South Korea, Thailand and India," he said.

Geographic distance -- it's a 30-hour flight from Jakarta to Lima -- between the two countries has been an obstacle for bilateral trade for years, he said.

"Many do not know about the opportunities available in each country," said the ambassador.

In order to promote exports to Peru, the Indonesian government has provided facilities for small and medium enterprises, including subsidies for shipping costs and customs clearance in Peru. The subsidy for shipping costs reaches $1,000 per container, while the subsidy for customs clearance is $900 per container.

Indonesian held similar expos in Bogota and Santiago in 2003, during which exhibitors booked deals worth over $1 million.

Indonesia has been actively looking for new export markets in third-world countries to reduce its reliance on developed countries, such as Japan, the United States and Europe. According to the head of BPEN's section for America, Australia and New Zealand, Lily Rosyana, Latin America is a potential market for Indonesian exports