Indonesian, Taiwanese firms sign MOU accords
JAKARTA (JP): Six Indonesian companies and their Taiwanese partners recently signed memorandum of understanding agreements to improve business cooperation.
The Investment Coordinating Board (BKPM) said in a statement here yesterday that the agreements were signed during a recent visit of the Indonesian trade mission to Taipei.
The board announced that PT Gaya Sentosa Lestari and PT Anugrah Langkat Makmur of Indonesia signed an agreement with Ching I Engineering Co. Ltd. for the construction of a fertilizer plant.
Other agreements were signed by PT Asiana Komunika of Indonesia and Chung Hwa Telecom and Dialer & Business electronics of Taiwan for the development of telecommunications equipment.
The Maspion Group of Indonesia signed an agreement with Tatung Corp. in the field of optic fiber and cable industries.
PT Kawasan Industri Medan signed another agreement with Taiwan Honban Investment for the expansion of the Medan industrial zone in Sumatra.
Kawasan Industri Medan also signed a deal with Ching I Engineering and Alpha Continental for the development of an electronics component factory.
The Indonesian trade mission led by State Minister of Investment Sanyoto Sastrowardoyo also visited Thailand.
In Thailand, companies from Indonesia, Thailand and Malaysia agreed to set up a joint car component manufacturer.
The joint venture facility is 40 percent owned by PT Timor Industri Komponen, subsidiary of the national carmaker PT Timor Putra Nusantara of Indonesia, 35 percent by Thai Summit Auto Parts of Thailand and 25 percent by Oriental Summit Industries of Malaysia.
BKPM said the new joint venture company, to be located in Cikampek, West Java, would need an investment of US$80 million.
"The establishment of the joint venture firm has three goals: to support Indonesia's Timor national car, to strengthen the ASEAN economy and to create the marketing network for Indonesia's Timor national car in ASEAN."
Thailand ranks 14th among 53 foreign countries investing in Indonesia. By June 30, there were 29 Thai projects in Indonesia worth $2.3 billion. Meanwhile, Taiwan is the sixth largest foreign investor in Indonesia, with 48 projects and a total investment of $12.6 billion. (icn)