KADIN says RI must woo ASEAN investors

KADIN says RI must woo ASEAN investors

KUALA LUMPUR (JP): The Indonesian Chamber of Commerce and
Industry (KADIN) suggested yesterday government officials and
businesspeople be more aggressive in attracting foreign investors
from neighboring countries.

KADIN chairman Aburizal Bakrie said here that Malaysia,
Thailand and Singapore, had become net investing countries.

"We need a lot of capital to develop our economy, and
countries like Malaysia now have capital to invest abroad. It's
up to us how to attract them to invest more in our country,"
Aburizal said.

Aburizal is touring Singapore, Malaysia, Thailand and the
Philippines to promote the first biannual ASEAN business summit
at the Jakarta Convention Center next month.

More than 600 business leaders and fund managers from ASEAN
and its major trading partners will attend the summit.

ASEAN groups Brunei, Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Vietnam.

Nasaruddin Koro, an official at the Indonesian embassy in
Malaysia said Malaysia had aggressively expanded its businesses
abroad.

"Malaysian businesses have invested billions of dollars
abroad, of which Indonesia got only very little," Nasaruddin said
at a meeting with KADIN executives.

He said Malaysian businesspeople had formed many links with
foreign counterparts but not with Indonesia.

Aburizal shared Nasaruddin's disappointment and said Malaysian
businesspeople faced many hurdles to investing in Indonesia. They
even had difficulties finding suitable Indonesian business
partners.

And Indonesian businesspeople did not yet consider Malaysian
businesses as prospective partners. They preferred partners from
major investing countries like the U.S., Britain and Japan to
neighboring countries.

"This matter has been reported to President Soeharto,"
Aburizal said.

He said Indonesian and Malaysian business leaders would soon
form a business council to bridge their business interests.

"When this institution is up and running it will help
businesses from both countries sound out more venture
opportunities," he said.

He said Malaysian Prime Minister Mahathir Mohamad support for
the establishment of the Indonesia-Malaysia business council.

Malaysia has 20 million people and in 1995 had a per capita
income of US$3,930 a year. Its exports were estimated at US$86.2
billion last year, while imports were estimated at $83.9 billion.

Indonesia has 200 million people and last year had a per
capita income of just over $1,000. Its exports were estimated at
$51.9 billion last year, and imports at $45 billion.

Topping the list of the largest investors in Indonesia in the
1995/1996 fiscal year were Japan, Britain and Hong Kong. Japan
invested $7.11 billion, the UK $5.71 billion and Hong Kong $2.16
billion.

In the same period, Singapore invested $2.17 billion, Thailand
$1.63 billion and Malaysia $1.37 billion. (rid)