Thu, 11 Nov 1999

Korean businesspeople positive about investment opportunities

JAKARTA (JP): A delegation of business executives from South Korea's largest province of Kyongbuk said they were optimistic about investment opportunities in Indonesia.

Kyongbuk Governor Eui-Geun Lee, who is leading the trade mission, said here on Wednesday investment opportunities in the country had continued to improve since the presidential election last month.

"We understood the unfortunate situation in Indonesia when a series of riots broke out sometime ago, but after the presidential election in October things have been improving with great speed," Lee said.

Lee hoped the trade mission would lead to increased trade between the two countries, which in turn would benefit businesspeople from both nations.

Some 150 Indonesian companies have been invited to talks with representatives of 15 South Korean companies at the Mulia Hotel in Central Jakarta from Wednesday to Friday.

The South Korean trade mission arrived in Jakarta on Wednesday after visiting Thailand and Vietnam. The group will return to their country on Friday.

Among the South Korean companies taking part in the mission are Semyung Industry Co. Ltd., which sells rubber auto parts such as antivibration rubber strips; Hanhyun Precision Tool Co. Ltd. (metal cutting tools); Mega-Chem Korea Co. (industrial cleaners and grease removers); and Sum Micro Filter Corp. (filter systems for oil, petrochemical and polymer metal filters).

Lee met with Jakarta Governor Sutiyoso and Minister of Industry and Trade Yusuf Kalla on Wednesday to discuss trade and cultural ties between the two countries.

Lee said it would benefit both Indonesia and South Korea to increase their cooperation.

Lee said South Korea currently had a trade deficit with Indonesia. Between January and September of this year, South Korea's exports to Indonesia stood at US$1.8 billion, while its imports from Indonesia reached $2.8 billion.

Young-Man Kim, the manager of the Korean Trade Center in Jakarta, said South Korea exported such items as electronics, fabrics, chemicals, steel and leather to Indonesia.

He also said among the items South Korea imported from Indonesia included liquefied natural gas (LNG), oil, pulp, coal, wood, natural rubber, polyester, latex, textiles and wool products.

Kim also said LNG made up the largest portion of his country's imports from Indonesia. From January to September, LNG accounted for about $900 million, or 32.5 percent, of South Korea's total imports from Indonesia.

Kyongbuk province is known for its electronics, automotive, and heavy industries. The province possess a rich cultural heritage dating back a thousand years. Like the country's capital, Seoul, Kyongbuk is home to a number of universities, Kim said. (udi)