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.