RI and Malaysia discuss barriers

JAKARTA (JP): Indonesian and Malaysian businesspeople will meet tomorrow to assess the problems and constraints of doing business in the two countries.

Indonesian businessman Sofyan Wanandi said yesterday the one- day Jakarta Dialogue, focusing on the Malaysia-Indonesian partnership, focussed mainly on finding the barriers to trade and investment between the two nations.

"Our leaders say Malaysia and Indonesia are of the same Malay race and live as neighboring countries, but why are our trade relations so insignificant considering the circumstances?" he asked.

Indonesian exports to Malaysia in 1995 were worth US$986.56 million, lower than those to Singapore ($3.76 billion) and only slightly higher than to the Philippines ($590.15 million).

Imports from Malaysia in the same period were worth $766.96 million, lower than those from Singapore ($2.36 billion).

Sofyan said he suspected there were psychological barriers making it difficult for governments and businesses to converge.

"The Indonesian government, with its often inconsistent and unclear policies, are only adding to these problems. This easily drives away investors, including those from Malaysia," he said.

The Indonesian Chamber of Commerce and Industry's chairman ASEAN affairs, Iman Taufik, said he doubted whether Indonesia could contribute significantly to the ASEAN Inc concept envisaged by many ASEAN countries including Malaysia.

"It has been 10 years since Indonesia dreamed of an Indonesian Inc and nothing has happened ... Our government lacks a vision. I have to say Indonesia is not ready for ASEAN Inc," he said.

Sofyan said the government should make an inventory of the sectors that were competitive in the world market, so it could focus on developing these industries.

"If we don't do this, we will merely become a market for ASEAN Inc," he said.

Sofyan said speakers at the Jakarta Dialogue would include businessmen Robby Djohan, Malaysia's Mirzan Mahathir and Malaysian Minister of Education Najib Tun Razak.

The meeting is being held jointly by Malaysia's Asian Strategy and Leadership Institute, the Malaysian Strategic Research Centre and the Indonesia Forum. (pwn)