RI and Malaysia discuss barriers

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)