Manila seeking more Indonesian investments

Manila seeking more Indonesian investments

MANILA (UPI): The Philippines said Wednesday it is currently
crafting an investment guarantee agreement with Indonesia in a
bid to further enhance bilateral economic relations between the
two countries.

The Trade and Industry Department said the agreement would
guarantee the security of Indonesian investments in the country
and protect their right to repatriate investments and profits.

Trade officials said a draft would be presented to Indonesian
officials next month during a three-day Philippines-Indonesia
Joint Commission for Bilateral Cooperation to be held in Manila
beginning September 6.

The commission was mandated by the presidents of both
countries in 1993 to serve as an umbrella mechanism for the
discussion of a broad range of bilateral relations between the
two.

Trade officials said there is a need to guarantee Indonesian
investments in the Philippines to woo in more economic players
from its neighbor.

Records from the Board of Investments show that Indonesian
equity investments from 1986 to 1994 amounted to only 265.24
million pesos (US$10.32 million) out of the total foreign
investments of 114.56 billion pesos ($4.45 billion) during the
period.

In the 1980s, Indonesian investments in the country were even
lower, amounting to less than one million pesos ($39,000) yearly.

During the September meeting, the Philippines would also
propose the creation of the Philippines-Indonesia Business
Council that would liaise between Manila- and Jakarta-based
investors.

Other issues that would be tackled during the joint commission
are cooperation in agriculture, forestry, air services, science
and technology, education and tourism.