Sat, 09 Apr 1994

JAKARTA (JP): Taiwanese businessman from small and medium sized companies, representing the China External Trade Council, are expected to visit Indonesia at the end of this month.

The China Trade Council is a consortium of private enterprises.

David Y.S. Tzou, Information Division Director of the Taipei Economic and Trade Office here, told The Jakarta Post yesterday that the group's visit indicates the strong commitment of Taiwan to improve economic cooperation with Indonesia.

This month's trip follows the recent visits of two Taiwanese trade and investment delegations. The first group consisted of executives from various government-owned enterprises and was led by Deputy of the Minister of Economics Lee Shu-jou. The second were businessmen from the ruling Nationalist party and were led by Tai-Ying Liu.

According to Tzou, the results of the previous visits were very satisfactory, although more follow-up work had to be done to settle the details of future cooperation.

"Since this is the first time the parties have met, nothing is secure yet. After two or three more meetings -- depending on the policy of the respective government agencies -- I think we can foresee more substantial forms of cooperation," he said.

Tzou said that he could not predict when the members of the delegations would establish joint ventures with Indonesian partners.

Members of the delegations were quoted yesterday by Kompas as saying that they planned to work with various state-owned companies, including PT Krakatau Steel, PN Garam, a salt company, The State Electricity Company (PLN) and the Pertamina oil company.

Apart from plans to establish joint training projects designed for small and medium-scale firms in Indonesia, Taiwan will also formulate a task force to conceive new Indonesian investment plans.

According to Lee, the investment climate in Indonesia is favorable for prospective Taiwanese investors.

"Indonesia just needs to reduce the waiting period for investors to obtain the permits for doing business," Lee said.

Taiwan's gross national product (GNP) grew by an annual average of 15.5 percent between 1965 and 1990. Its GNP was recorded at $229 billion last year.(10)