Bangladesh offers tax break to RI investors

JAKARTA (JP): Visiting Bangladeshi Minister of Textile Industries Abdul Mannan pledged here yesterday to offer a 12-year tax holiday to Indonesian investors who establish industrial projects in his country.

After paying a courtesy call on President Soeharto at Merdeka Palace, Mannan told reporters that the Bangladeshi government is offering the tax break so that Indonesia will relocate its textile plants and invest in various sectors in Bangladesh.

Indonesia, which has comparative advantages in its textile industry, will have a better chance of establishing textile plants in Bangladesh than in other developing countries, Mannan stressed.

Mannan, who was leading a Bangladeshi trade mission to Indonesia, ended his four-day visit yesterday. Earlier he met with Coordinating Minister for Industry and Trade Hartarto and State Minister of Investment/Chairman of the Investment Coordinating Board Sanyoto Sastrowardoyo.

"We are inviting Indonesian companies to run businesses in Bangladesh," he said.

He said Soeharto promised to promote Indonesian investment in Bangladesh and encourage cooperation in the production of textile machinery and products.

Mannan said the President reacted with great interest to the invitation written by Bangladeshi Prime Minister Begum Khaleda Zia to promote economic cooperation between the two countries.

He said the prime minister also invited the President and first lady Tien Soeharto to visit Bangladesh this year.

Suara Pembaruan daily reported yesterday that Bangladesh has shown interest in investing in the carpet industry here.

The newspaper quoted Soesanto Sahardjo, an advisor to the minister of industry, as saying that his ministry will support Bangladeshi investment, considering that raw materials for the carpet industry are readily available in Indonesia.

The carpet industry will use jute as its raw material.

Both countries are committed to sending officials to each other's capitals in the future to follow through on plans to improve trade and investment cooperation. (fhp)