Kadin courts Taiwanese investment
TAIPEI, Taiwan (JP): Indonesia embarked on a significant campaign to attract investors yesterday as some of the country's top executives descended on Taipei to establish contacts with Taiwanese entrepreneurs.
Led by Aburizal Bakrie, chairman of the Indonesian Chamber of Commerce and Industry (Kadin), over 50 top Indonesian businessmen, along with a number of government officials, met with members of the Chinese National Association of Industry and Commerce.
"Business cannot be done in one meeting but, at least, we can establish contacts," Aburizal said during a meeting at the China External Trade Development Council tower.
Despite the lack of diplomatic relations between the two countries, Taiwan, behind Japan and Hong Kong, remains one of the top three foreign investors in Indonesia. Total Taiwanese investments since 1967 reached US$8.5 billion as of last June.
"It is our responsibility to develop business matching like this meeting," Aburizal said among a distinguished business crowd, which included Burhan Uray, chairman of the Djajanti Group, Fadel Muhammad, president of PT Bukaka Teknik Utama, and Soy M. Pardede, president of PT Spinindo Mitradaya Batam.
According to Asril Noer, the Investment Coordinating Board's (BKPM) chief for overseas promotion, Taiwanese investment in the last six months alone reached US$2.4 billion, making up a quarter of the $9.7 billion foreign investments coming into the country in 1994.
"Taiwan's investments will probably reach $4 billion this year," Asril told The Jakarta Post.
He said that two months ago, Taiwan had been able to replace Hong Kong as the second largest investor. However, a newly approved electrical joint investment project put Hong Kong back in second as of three weeks ago.
Attractive
Speaking of the attractiveness of Indonesia as an investment site, Sjamsul Nursalim, president of Bank Dagang Nasional Indonesia and chairman of the Gajah Tunggal Group, said that Indonesia remains the most attractive among the countries in Southeast Asia.
He said that the many licensing problems that existed in the past are no longer evident and that doing business with Indonesia is "much easier".
Sjamsul specifically mentioned the newly introduced deregulation package, which eases investment regulations for foreign investors.
Steve Wu, director of the industrial development and investment center of Taiwan's ministry of economic affairs, said that the Indonesian government's consent to allow the importing of Chinese technical journals and the establishment of a Taiwanese school for expatriates in Jakarta helped create an agreeable climate.
However, Ferry Yahya the chief of industrial department at Kadin's Taipei office, told the Post that despite the flexibility, implementation was not yet fully realized.
"Immigration officials still often confiscate the materials," he said.
Achmad Kurniadi, also from Kadin's Taipei office, said that Taiwanese investors usually move in groups.
"If one of them is successful, others will follow, but if one fails, then it would be difficult to attract others," he said.
Thus he urged that any impediments be swept away since the repercussions could be long lasting.
According to Ferry, in order to facilitate better economic ties, Kadin's Taiwan office will be upgraded to a Trade and Commerce Office by the end of the year.
Currently, Taiwan already operates a similar office at Dharmala Tower in Central Jakarta. (mds)