Mahathir urges Malaysian firms to relocate to RI

Fabiola Desy Unidjaja, The Jakarta Post, Jakarta

Former Malaysian prime minister Mahathir Mohammad urged Malaysian companies that employ Indonesian workers to relocate their businesses to Indonesia on Monday.

The move would solve long-standing problems related to illegal migrant workers that put at risk the ties between the two countries, he said.

Speaking after a meeting with President Susilo Bambang Yudhoyono here, Mahathir said the investment climate in Indonesia was improving, so there was no reason why Malaysian firms should not operate here.

"It would be better for the Malaysian labor-intensive companies to open their businesses in Indonesia, because most of their workers are from Indonesia. It could solve the ongoing problem of illegal migrant workers," Mahathir said.

Indonesia and Malaysia have been negotiating various agreements to administer hundreds of thousands of Indonesian migrant workers in Malaysia.

Malaysia has planned the mass deportation of Indonesian illegal migrants following the enactment of a new immigration act in 2003. According to the Indonesian government's estimate, there are around 700,000 Indonesian illegal workers in Malaysia.

Kuala Lumpur has extended the amnesty period for the illegal migrants to leave Malaysia until Dec. 31 from the original schedule of Nov. 14, after less than 80,000 Indonesian illegals responded to the amnesty offer.

During his first meeting with the Indonesian president, Mahathir also praised the successful direct election in Indonesia that ensured a peaceful transition of power in the neighboring country.

"In other countries, such an election could cause riots ... but in Indonesia it happened in a very peaceful way, although the country has only implemented democracy in the last couple of years," Mahathir said.

He continued to say that Indonesia and Malaysia are known as moderate Muslim countries and there should be further discussions on cooperation between the two to promote the peaceful face of Islam.

"We could share thoughts and information to handle the growing extremism in the Islamic world," Mahathir said.

When asked whether he would meet his old friend, Soeharto, during his visit here, Mahathir said: "No, this time I will not meet anybody."

Before talking to the press, one of the former prime minister's aides announced to Palace reporters that Mahathir would like to give a press briefing, but would not accept any questions on his former deputy-turned nemesis Anwar Ibrahim.

Anwar, Mahathir's political opponent, concluded on Friday his five-day visit to Indonesia, where he met Vice President Jusuf Kalla and other high-ranking state officials.