Goh proposes $740m fund for Indonesia<\/p>\n
JAKARTA (JP): Singapore Prime Minister Goh Chok Tong, who is
\nleading a big investment mission here, proposed on Thursday two
\ninvestment funds totaling US$740 million designed to kick-start
\ninvestment by Singaporean companies in Indonesia.<\/p>\n
Goh told a joint news conference after meeting President
\nAbdurrahman Wahid that Singapore government-linked companies
\nplanned to invest up to $500 million in buying minority stakes in
\ndistressed assets held by the Indonesian Bank Restructuring
\nAgency (IBRA).<\/p>\n
A further $240 million (S$400 million) in loan facilities
\nwould be set up in conjunction with Singapore-based banks to
\nfinance investment by Singaporean firms in Indonesia, Goh added.<\/p>\n
He said Singapore would also spend $1.2 million to promote
\nIndonesia and Singapore as a joint tourist destination to take
\nadvantage of some seven million visitors visiting the island
\nstate annually.<\/p>\n
\"Our strategy is to try to funnel some of these visitors into
\nIndonesia,\" he said.<\/p>\n
Goh said Singapore wanted to act as a catalyst to woo foreign
\ninvestors into Indonesia.<\/p>\n
But he cautioned it wouldn't be politically wise for
\nSingaporean companies to be seen to be controlling Indonesian
\nassets.<\/p>\n
\"We won't take a majority share of IBRA companies,\" Goh said.<\/p>\n
He said the fund could invest independently or in conjunction
\nwith others as part of an investment consortium to foster foreign
\npurchases of IBRA-owned companies.<\/p>\n
Goh, accompanied by a 15-member official delegation, including
\ntwo ministers and a 60-member business team, is on a two-day
\nstate visit to Indonesia, his first since Abdurrahman's election
\nin October.<\/p>\n
Among the officials accompanying him are Foreign Minister S.
\nJayakumar and Minister of Trade and Industry George Yeo.<\/p>\n
The business delegation includes representatives from
\nSingaporean companies and international businesses based in
\nSingapore interested in investing in manufacturing, trade,
\nlogistics, financial services and tourism.<\/p>\n
Goh also called for increased Singaporean private investment
\nin the islands of Batam and Bintan, in Riau province, and
\nsuggested the two islands be given special economic status.<\/p>\n
Goh said foreign investors had been generally cautious about
\ninvesting in Indonesia despite a much-improved political
\nsituation, but said the investment climate was becoming more
\nsecure.<\/p>\n
But he reiterated that the most important factor in setting
\nthe Indonesian economy on the road to recovery was security.<\/p>\n
\"The most important factor in getting the Indonesian economy
\nback on track is the security and political situation in
\nIndonesia,\" Goh added.<\/p>\n
Goh hoped Singapore's public show of confidence in its
\nneighbor, and the facilities it was putting in place to stimulate
\ninvestment, would be a catalyst to encourage investors around the
\nworld to do business in Indonesia.<\/p>\n
Goh praised Abdurrahman's government as good a team as
\nIndonesia could get and said it was too early to pass judgment on
\nthe President's handling of the country's problems after only
\nabout three months in office.<\/p>\n
\"We have to give the President much more time to resolve
\nthe ... uncertainty. I would think he has done as well as he
\ncould. The problems are complex, they are very severe.\"<\/p>\n
Abdurrahman reassured investors, saying Indonesia was a safe
\nplace to invest, despite an explosion of religious violence in
\nMaluku and growing separatist pressures in the provinces of Aceh
\nand Irian Jaya.<\/p>\n
\"Security-wise and politics-wise we are safe,\" he said at the
\nnews conference.<\/p>\n
Abdurrahman added that things would improve gradually in the
\nprovinces.<\/p>\n
The President later told a gathering with mass media editors
\nthat Indonesia greatly appreciated the initiative taken by the
\nSingapore government to woo back foreign investment to Indonesia.<\/p>\n
\"They are really serious and strongly committed to helping us
\nand we should be grateful for that goodwill,\" Abdurrahman added.<\/p>\n
The Singaporean delegation also met with Indonesia's Minister
\nfor the Economy, Finance and Industry, Kwik Kian Gie, Minister of
\nFinance Bambang Sudibyo and Indonesian businesspeople to thrash
\nout details of the proposed investment concept.<\/p>\n
Goh also met with Vice President Megawati Soekarnoputri and
\nPeople's Consultative Assembly Speaker Amien Rais later in the
\nafternoon. (prb\/vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/goh-proposes-740m-fund-for-indonesia-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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