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)