Malaysia, Indonesia plan joint investment clearing house
Malaysia, Indonesia plan joint investment clearing house
KUALA LUMPUR (AFP): The Malaysian and Indonesian governments were to set up a common clearing house to speed up joint venture projects, officials said Saturday after the launch of two bilateral venture capital and oil palm projects.
"The clearing house comprising government and private sector officials can cut red tape pertaining to approval of the projects and hasten the pace of investment and cooperation," Indonesian Finance Minister Mar'ie Muhammad said.
Muhammad was speaking at a joint press conference with Malaysia's deputy Premier Anwar Ibrahim after witnessing the inking of a pact between state-owned Bank Rakyat Indonesia (BRI) and Malaysian firm Renong Nusantara Sdn Bhd to set up a venture capital company in Jakarta.
Renong Nusantara, a wholly owned subsidiary of Renong Berhad linked to Premier Mahathir Mohamad's United Malays National Organization, has a 50 percent stake in the US$100 million joint venture PT Malindo Nusantara.
Bank Rakyat, Indonesia's biggest lending bank with assets worth nearly US$12 billion, would hold 43 percent equity in the venture with several other Indonesian enterprises and individuals holding the remaining equity.
The venture capital company would assist in the development of small and medium scale industries in Indonesia, particularly in the manufacturing, infrastructure and financial services sectors, Renong Nusantara chairman Aman Ahmad said.
The two finance ministers also witnessed the signing of a joint venture pact between Malaysian plantation firm Kretam Holdings Berhad and PT Ira Widya Utama to develop a US$150 million palm oil project in north Sumatra, Indonesia.
The two companies would develop a 40,000-hectare (98,000-acre) oil palm plantation and set up four palm oil mills over a 10-year period, officials said.
Malaysia and Indonesia agreed to step up trade and investment ties after a "breakthrough" mission led by Anwar to Jakarta in January, officials in Kuala Lumpur said.
Bilateral trade, in Malaysia's favor, increased from US$762.1 million in 1989 to $1.76 billion last year, officials said.