Australia should invest in manufacturing: BKPM

JAKARTA (JP): Indonesia's investment mission to Australia has strongly recommended that Australian companies invest in manufacturing rather than in short-term trading.

The mission, comprised of deputy chairman of the Indonesian Investment Coordinating Board (BKPM) Sugihono Kadarisman, the president of the Indonesia-Australia Business council, Moetaryanto, and around 30 business people are visiting Perth, Melbourne and Sydney from Aug. 27 to Sep. 3

"Australian companies should focus their investments on long- term gains rather than short-term trading," Moetaryanto said in his speech, a copy of which was made available here yesterday.

He said that Australians are in an ideal position to capitalize on the business opportunities in Indonesia, given their capability and greater access to world markets.

"Although Australia may not have the capital, you are in the position to act as a coordinating partner. Australia could lobby for international funds and invest Australian technology and expertise into key areas," he said.

In addition to the pure business relationship, Moetaryanto gave considerable attention to the importance of local Indonesian partners.

Although the recent investment deregulation allows 100 percent foreign ownership, "there should be no such thing as a silent partner... local advisors can provide insight into almost all problems, they are a source of information and most importantly, they can interpret information that foreigners may never see."

Australian investment in Indonesia is on the rise and reached US$53 million in 1994, not including the oil and gas sector or financial services.(hen)