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)