Middle East investors look at Indonesia's business prospects

JAKARTA (JP): About 200 major Middle Eastern investors and bankers are taking a closer look at the business opportunities cropping up in the country's battered economy.

Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Aburizal Bakrie said on Thursday the investors would concurrently attend a two-day workshop on finance at the Borobudur Inter-Continental Hotel.

The Workshop on Strengthening Islamic Countries Financial Institutions to Revitalize Southeast Asian Economies is organized by KADIN, the Islamic Chamber of Commerce and Industry -- which is under the auspices of the Organization of Islamic Countries -- and the Association of International Islamic Banks.

President B.J Habibie is scheduled to open the workshop on Friday at the State Palace.

Aburizal said the government and businesspeople would use the workshop to show the promising business prospects to the visitors. Investment from the Middle East is expected to help revitalize the country's economy.

"Several ministers will make presentations to them and offer them the chances to take on projects in their respective departments and to acquire state-owned enterprises under their supervision," he said.

Business opportunities in oil and gas, plantations, fishery, tourism and finance will be plugged.

"We can't take it for granted that they will be willing just because most Indonesians have the same religion with them. They are all businesspeople who will only invest if they think it profitable," Aburizal said.

The visitors, he added, include the top executives of international banks like the Kuwait Finance House, the Saudi Fund for Development, Dallah Al Baraka (UK) Ltd., Al Mudarabah Investment Qatar, Abu Dhabi Fund for Development.

"Most of the 200 Middle Eastern companies and banks are represented by their top people at the workshop. Some of them are coming here at the direct request of their kings, sultans and head of states."

He said the Middle Eastern leaders had responded to a request from Habibie, which was conveyed by the country's special trade envoy to the Middle East, Muchrim Hakim.

Hakim said Middle Eastern governments and businesspeople had invested about US$450 billion in international corporations across the world.

"If, say, they put 1 percent of the funds in Indonesia, that means we would get an investment of $4 billion, a huge investment to us," Aburizal said.

Special trade envoy to China, Taiwan, Hong Kong, Australia and New Zealand, James T. Riady, who is also vice chairman of the Lippo Group, said the government's move to draw investment from the Middle East should be supported because of the dire need for capital inflow.

"The efforts should be appreciated," he said.

Habibie is scheduled to open the workshop together with the Second Executive Council Meeting of IIFTIHAR, an organization formed in 1996 to promote the contribution of Moslem communities to the world's economy and technology.

Habibie is chairman of IIFTIHAR's Executive Council. (jsk)