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.