Seminar held to woo Thai investors<\/p>\n
By Ati Nurbaiti<\/p>\n
BANGKOK (JP): Indonesian business entrepreneurs seeking
\ncooperation opportunities in Thailand are not discouraged by
\nThailand's current economic problems.<\/p>\n
Chairman of Indonesian Chamber of Commerce and Industries
\nAburizal Bakrie said here yesterday that Thailand's financial
\nproblems were only temporary.<\/p>\n
\"We believe the condition is temporary ... and may recuperate
\nin about six months ... or much faster,\" Aburizal said after
\naddressing a seminar here on Thai investment opportunities in
\nIndonesia.<\/p>\n
He said he was optimistic that the International Monetary
\nFund's commitment to help solve the Thai financial problems would
\nimprove the economy.<\/p>\n
Indonesians were keen to share Thailand's skills, for instance
\nin developing agroindustry, he said. \"Can we market our durian as
\nwell as yours?\" he asked, referring to Thai durian which is
\npopular with Indonesians.<\/p>\n
Aburizal led a group of 35 Indonesian entrepreneurs at the
\none-day seminar. Seventy Thai entrepreneurs also participated.<\/p>\n
The talks were opened by Minister of Investment\/Chairman of
\nthe Investment Coordinating Board Sanyoto Sastrowardoyo, and
\nThailand's secretary-general to the Board of Investment (BOI),
\nStaporn Kavitanon.<\/p>\n
The event was organized by Thailand's embassy in Indonesia and
\nits board of investment.<\/p>\n
Sanyoto and his delegation, excluding the chamber of commerce
\nmembers, leave tomorrow for Taipei on a similar mission.<\/p>\n
Today Sanyoto and Prime Minister Chavalit Yongchaiyudh will
\nwitness the signing of a memorandum of understanding between
\nIndonesian, Thai and Malaysian companies on producing automobile
\nparts for the Timor national car project in Cikampek, west of
\nJakarta.<\/p>\n
Benny Kurniady of PT Timor Industri Komponen will represent
\nthe company that produces the national car and with others from
\nPT Timor Putra Nastional, PT Amalmas Wibawa Agung, Thailand's
\nOriental Summit Industries and SDN Bhd Malaysia. Oriental Summit
\nwill invest $80 million with a 35 percent share, Sanyoto said.<\/p>\n
Minister Sanyoto said Indonesia suffered a trade deficit with
\nThailand of US$4.84 million in 1994, which had reached $34,22
\nmillion in 1995.<\/p>\n
\"Last year this deficit widened to $272.77 million, as a
\nresult of exports of $822 million and imports of $1.09 billion,\"
\nhe said. But bilateral trade increased at an average 31.5 percent
\na year from 1992 to 1996, he said.<\/p>\n
He told the forum he had a \"fruitful\" meeting Monday with
\nThailand's Minister of Industry and Deputy Prime Minister Korn
\nDabbarangsi, in which Dabbarangsi said there were only 29 Thai
\nprojects in Indonesia, \"which were doing quite well\". They
\ninclude the Bangkok Bank and the CP poultry food provider.<\/p>\n
Sanyoto said the 29 direct investment projects which include
\nfood, chemicals, paper, textiles and metal goods, were worth $2.3
\nbillion up to June this year.<\/p>\n
\"Although it ranks 14th among all 53 foreign investing
\ncountries ... (Thailand) is behind Malaysia which ranked 11th
\n(with total investment of $5.2 billion) and far behind Singapore
\nwhich ranked 3rd ($17.5 billion),\" Sanyoto said.<\/p>\n
It is a pity, he told The Jakarta Post, that with so many
\ngraduates in agriculture Indonesia's agroindustry was poor
\ncompared to Thailand's. In his appeal to Thai investors he said
\nthe new ASEAN industrial cooperation scheme entitled companies
\nfrom participating countries to preferential tariff rates of 0
\npercent to five percent.<\/p>\n
On whether Indonesian red tape deterred Thai investors,
\nKavitanon and Aburizal separately said that red tape was
\neverywhere -- \"but the private sector knows how to deal with red
\ntape,\" Aburizal said. Investment opportunities would increase
\nwith a better knowledge of what was available, he said.<\/p>\n
He said the memorandum of understanding signed in May by State
\nMinister of Research and Technology B.J. Habibie and Minister
\nDabbarangsi to construct a pipeline from the Natuna gas site to
\nThailand was an interesting project.<\/p>\n
Aburizal said Bakrie Steel Industries was working on plans to
\nshare swap 10 percent to 15 percent of the company with similar
\ncompanies in Thailand, Singapore and Malaysia. He declined to
\ngive more detail.<\/p>\n
\"It is the initial step ... the main idea is merging,\" said
\nAburizal, who presides over the ASEAN business forum set up in
\n1991. He said there would be similar possibilities in next five
\nyears in the telecommunications and manufacturing sectors.<\/p>\n
Indonesian participants in the seminar include Iman Taufik and
\nMooryati Soedibyo, the president director of PT Mustika Ratu.<\/p>",
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