East Timor woos Indonesian investors
M. Taufiqurrahman, The Jakarta Post, Jakarta
East Timor has called on Indonesians to invest in the country, saying there are a number of business opportunities open to investors.
East Timor Prime Minister Mari Alkatiri said on Thursday that tourism, trade and manufacturing were among the sectors that could be attractive to Indonesian investors.
He said to lure more investors, especially from Indonesia, the East Timor administration was preparing a legal framework to help business thrive.
Alkatiri said his government was considering adopting Indonesia's investment law, rather than the package of law laid out by the United Nations's transitional administration.
"The incentives (contained in the law formulated by the UN transitional administration) are just not attractive enough," Alkatiri said during the signing of the Memorandum of Understanding between the Indonesian Chamber of Commerce and Trade (Kadin) and the East Timor Business Association.
For example, he said, the immigration law proposed by the UN administration imposed barriers on investors wishing to enter the country.
"All foreigners who enter East Timor through its main gateways have to pay a fee worth US$25," he said.
Alkatiri is here for a four-day state visit.
East Timor, which was formerly part of Indonesia, officially gained independence more a year ago. It has reported huge unexploited oil and gas resources, but today agriculture is the backbone of the country's economy with coffee, rice and maize the main commodities.
Kadin chairman Aburizal Bakrie said East Timor was a lucrative market for Indonesia, citing the high demand for Indonesian products in the country.
He said Kadin members were keen to supply foods, oil and to invest in the construction of low cost housing and infrastructure in the new country.
"If possible, we also want to take part in the exploration of East Timor's reserves of oil and natural gas," Aburizal told reporters.
He also said a member of Kadin planned to set up a garment and cement factory in East Timor, but did not provide details.