Taiwan asked to facilitate capital flow to RI<\/p>\n
By Meidyatama Suryadiningrat<\/p>\n
TAIPEI (JP): The Indonesian Chamber of Commerce and Industry
\n(KADIN Indonesia) yesterday asked Taiwanese Prime Minister Lien
\nChan and Minister of Finance Lin Chen-Kuo to solicit support to
\nfacilitate investment to Indonesia.<\/p>\n
\"I asked their help in smoothing the flow of investments from
\nTaiwan to Indonesia,\" Kadin's chairman, Aburizal Bakrie, told
\nreporters following meetings with Lien and Lin here.<\/p>\n
Aburizal is currently heading a delegation of some 60
\nprominent businessmen to establish commercial contacts and lobby
\ngovernment officials in Taiwan.<\/p>\n
\"The Prime Minister welcomes the close cooperation between the
\ntwo countries since it is in line with Taiwan's 'Go-south'
\npolicy,\" he said.<\/p>\n
Taiwan has launched a policy of investing to the Southeast
\nAsian countries in a conscious effort to divert investments from
\nmainland China.<\/p>\n
Behind Japan and Hong Kong, Taiwan is the third largest
\ninvestor in Indonesia with total investments in excess of US$8.5
\nbillion. During a meeting with President Lee Teng-hui on Monday,
\nLee affirmed Taiwan's commitment to invest a total of $15 billion
\nby the middle of next year.<\/p>\n
\"The Prime Minister said that both countries have something to
\noffer each other and that they complement one another,\" Aburizal
\nsaid.<\/p>\n
Difficulties<\/p>\n
In a separate meeting with Minister of Finance Lin Chen-Kuo,
\nAburizal conveyed a number of difficulties hindering investment
\ncooperation between the two countries.<\/p>\n
Aburizal said he had appealed to Lin to allow more than two
\nTaiwanese banks to set up offices in Jakarta.<\/p>\n
\"Trade follows the banks,\" he reasoned.<\/p>\n
Another matter brought up during the meeting was the
\ndisagreement over the terms set on Taiwan's planned soft loan to
\nIndonesian cooperatives and small enterprises in North Sumatra.
\nThough the loan was allocated last year, it has still not been
\ndisbursed due to a disagreement over terms<\/p>\n
The planned 20-year loan will provide $10 million in funds
\nwith an interest rate of 2.5 percent per annum and a grace period
\nof three years.<\/p>\n
Aburizal explained that Indonesia cannot accept the terms
\nsince a Presidential decree stipulates that the loan must at
\nleast be for 25 years with a grace period of 5 years.<\/p>\n
\"I asked the minister to give us some leeway on this matter,\"
\nhe said, adding that the finance minister is considering the
\nsuggestions.<\/p>\n
Since Indonesia does not have diplomatic relations with
\nTaiwan, the government loan is being handled by Bank Indonesia
\nand Bank Bukopin.<\/p>\n
\"That's why Mochtar Mandala is here,\" Aburizal said referring
\nto the president of Bank Bukopin.<\/p>\n
Last night, the two countries' chambers of commerce also
\nsigned a memorandum of understanding to forge greater cooperation
\nand facilitate the needs of businesses in the two countries.<\/p>\n
The agreement was signed during a reception at the residence
\nof the chairman of the Chinese National Association of Industry
\nand Commerce, Jeffrey Koo.<\/p>\n
The two chambers also agreed to establish committees to
\noversee the commercial interests of both countries. Indonesia's
\nTaiwan committee will be headed by businessman Pontjo Sutowo.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/taiwan-asked-to-facilitate-capital-flow-to-ri-1447893297",
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"sponsor": "Okusi Associates",
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