Finnish firms to invest here

Finnish firms to invest here

JAKARTA (JP): Two Finnish firms will invest in Indonesia by cooperating with local firms.

Enso of Finland agreed last Friday to cooperate with PT Gudang Garam, a listed cigarette maker, and the state-owned forestry firm, PT Inhutani III, to invest almost US$1 billion in an integrated pulp mill in West Kalimantan, with an annual production capacity of 500,000 tons.

Gudang Garam will hold a 40 percent stake in the joint venture, while Enso and Inhutani III will each control a 30 percent stake, Kadar Slamet, an executive of Inhutani III, said.

Executives of a Finnish company which makes the Norplan implant contraceptive told Antara on Saturday that they will build a factory in Indonesia.

Norplan products are already available in Indonesia, but their high price prevents their widespread use, they said.

No further details on the Norplan move were reported.

Both deals were signed when Finnish president Martti Ahtisaari visited Indonesia last week to enhance economic ties between the two countries. Ahtisaari, who left for Bangkok on Saturday, also witnessed the inauguration of the Finland-Indonesia Business Council.(hdj)