East Timor woos Indonesian investors

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.