Aussie housing center to be built in Jakarta

Aussie housing center to be built in Jakarta

CANBERRA (AFP): Australia wants to build a A$500,000 (US$360,000) housing center as a showcase for its skills and building technology in Jakarta, housing minister Brian Howe said yesterday.

Howe, who is also deputy prime minister, leaves today for China, Japan and Indonesia on a three-week trip during which he will discuss the proposal with his Indonesian counterpart Akbar Tandjung in Jakarta later this month.

Also on the agenda is a memorandum of understanding on housing and urban development between the two countries, which Howe hopes to be ready for signing during an annual meeting of Indonesian and Australian ministers here in August.

The center is planned as part of a A$1 billion export drive for Australia's housing and construction industry, which has already signed lucrative deals in China, Thailand and elsewhere in Asia.

Recent studies have found the industry could contribute A$1 billion to Australia's export revenue, creating 22,000 jobs.

But it had to first accept the potential market was "broader than the limits of Australia", Howe said.

The Jakarta center would be an exhibition center for Australian housing and urban activity in Indonesia.

"It would be a clustering point, where we could bring Australian industry into the heart of Jakarta in a sense and provide a base for people trying to break into the market."

Howe will be in Jakarta for the Australia Today Indonesia 94 promotion, and will open a major retail promotion of Australian products in the Hero supermarket chain in Jakarta.

In Beijing, he will sign an agreement with Chinese construction minister Hou Jie covering joint ventures, training and information exchanges on a variety of urban development areas.

Australian firms, although reasonably well regarded in Asia, had to show they had "a feeling for the country" and were able to work with the different cultures, Howe added.