Austrian businessmen asked to invest more in Indonesia
JAKARTA (JP): The Indonesian Chamber of Commerce and Industry (Kadin) has asked Austrian businesspeople to invest more in Indonesia, chairman Aburizal (Ical) Bakrie said yesterday.
He said the chamber also wanted Austrian businesspeople to help locals export to Central and Eastern Europe.
"Austrian investments are still small here compared to around US$1 billion made by the Netherlands," Ical said after meeting an Austrian business delegation led by Egon Winkler.
Austrians invested around $40 million in Indonesia last year in power stations, railway equipment and other things.
The 20 member trade mission arrived Wednesday for a two-day visit. The delegation included representatives of Bank Austria, training consultancy Vais, steel manufacturer VA Tech, power supplier Elin and contractor MCE.
The visit, which ended yesterday, followed up on Kadin's meeting in July in Vienna, said Winkler, the Austrian Federal Economic Chamber's director general of foreign trade and European integration.
Ical said yesterday that Austria, with a population of about 8 million, had great potential.
"That country's per capita income reached $25,000, much more than Indonesia's $1,000. If it wants, Austria could invest up to $10 billion in Indonesia," he said.
"The problem is, whether they want to make Indonesia or Asia a commercial hub in the region," he said, adding that Indonesia should promote investment more to attract Austrians.
Ical said Kadin had asked Austria to help Indonesia export to Central and Eastern Europe.
"Austria also has expertise in banking and counter-trade arrangements," he said.
During an official visit to Indonesia in March last year, Austrian President Thomas Klestil said his country intended to focus its relations on Asia, particularly Indonesia.
Austrian Embassy Commercial Counselor Oskar Andesner told The Jakarta Post that his country's two-way trade with Indonesia reached US$415 million last year, up 50 percent on the previous year.
He said Austrian exports to Indonesia totaled around $315 million last year.
"We are trying to substantially increase our trade and economic relations between Indonesia and Austria. That's why we organized this meeting," Winkler said.
The visiting Austrian businesspeople sought opportunities not only in manufacturing but also in energy, transport, metallurgy, health, education, finance, technology and the environment, he said.
Ical said the Austrian delegation expressed keen interest to take part in the $2.3 billion Blok M-Kota subway project.
Construction for the 14.5-km subway system is to begin next year, and is scheduled to be completed in 2001. The project involves Itochu of Japan, Siemens and Ferrostal of Germany.
The Indonesian investors in the project are Ical's PT Bakrie Investindo, PT Pembangunan Jaya, PT Lippo, PT Bukaka/PT Kuda Perkasa, PT Suthamthabie and PT Steady Safe.
Bambang Trihatmodjo, President Soeharto's son, is also interested in joining Jakarta's first subway project, which will link Blok M in South Jakarta to Kota in West Jakarta. (icn)