RI askes Spore to invest more

RI askes Spore to invest more

JAKARTA (JP): President Soeharto asked Singaporean companies to invest more in Indonesia, especially in the areas of power plants, highways, telecommunications, railways, tourism and finance.

The president of the Singapore Federation of Commerce and Industry, Robert Chua, told reporters after meeting with Soeharto here yesterday that Soeharto wanted Singaporean companies to take part in the financing of aircraft procurement in Indonesia as one way of developing the tourism industry.

Soeharto, Chua said, also invited Singaporeans to take part in the development of a 60-kilometer Yogyakarta-Solo toll road in Central Java.

Chua, who was here to lead a 68 member investment delegation, said the President was inviting Singapore to set up joint venture companies with small-scale Indonesian businesses and to assist them in terms of management and financing.

Before meeting with Soeharto, the delegation had held talks with Coordinating Minister of Industry and Trade Hartarto, Minister of Industry Tunky Ariwibowo, State Minister of Investment Sanyoto Sastrowardoyo and executives of the Indonesian Chamber of Commerce and Industry (Kadin).

Soeharto explained Indonesia's policy on 30 year land titles for foreign investors, a policy considered quite unattractive as many other countries offer 50 years or more.

However, Chua said, Soeharto added that ownership can be extended for another 30 years and then another 30 years, without limit. The policy holds true as long as the investors still operate and remain as positive contributors to the economy and the country's development.

Chua conceded that Indonesia has become a very attractive site for foreign investments, especially after the introduction last year of the government regulation No. 20/1994.

The regulation eases requirements on minimum capital and equity divestment for joint ventures.

Singapore's cumulative investments approved by the Indonesian government since 1967 reached US$7.25 billion for 411 projects as of the end of last year.

Singapore is the fifth largest investor in Indonesia, after Japan, Hong Kong, Britain and the United States.

After meeting with Soeharto yesterday, the Singapore delegation, which arrived here Monday for a four-day visit, visited a number of industrial estates around Jakarta before leaving for Surabaya in East Java to scout out business opportunities there. (rid)