Kadin courts Taiwanese investment

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)