RI could see upsurge of investment from Malaysia
RI could see upsurge of investment from Malaysia
M. Jegathesan, Agence France-Presse/Kuala Lumpur
Malaysian businessmen, wary in the past of security threats and a weak legal system in neighboring Indonesia, are giving the thumbs up to new President Susilo Bambang Yudhoyono's leadership.
Some 45 Malaysian businessmen met the visiting Indonesian president this week for an hour-long discussion and emerged to say they would seriously consider new investment in Indonesia.
They said palmoil plantations, energy, toll roads and infrastructure were among the sectors they were interested in.
Moehamad Izat Emir, president of the Malaysian Malay Businessmen and Industrialists Association, praised Susilo's leadership.
"He is very honest, frank and genuine. It is obvious the new president means business," he told AFP.
Moehamad said Indonesia had taken measures to improve rules and regulations which in the past had caused "a lot a concern to us".
"I think Malaysians should take advantage to invest in Indonesia as we are now being invited (in) by the president," he said.
Moehamad, who runs two factories producing cardboard in Indonesia with investments totaling 12 million ringgit (US$3.15 million), said Indonesia's huge population offered the biggest regional market after China and India.
"My group will be keen to explore any new opportunity and take part in it," he said.
The World Bank puts Indonesia's population at 214 million.
Steel tycoon William Cheng, chairman of the Lion Group, said the climate in Indonesia was now suitable for investment.
"Politically everybody believes this new president is firm and security is improving," he said.
In the past, fear of riots, especially against minority ethnic Chinese businessmen, had made some Malaysian investors shun Indonesia.
Cheng, who has steel factories and palmoil plantations in Indonesia, said that after the talks with Susilo the company would seriously consider boosting its investments.
Metro Kajang Group of Malaysia deputy executive chairman Alex Chen said his property company would now look for opportunities in Indonesia.
"The meeting was very positive. I think now is a good time to invest in Indonesia. The president has new ambitions and ideas. We should not lose out now."
Chen said his group would be looking at development, steel manufacturing and plantation opportunities in Indonesia in the near future.
Susilo, who was sworn into office last October, has pledged to attract more foreign investment by revamping a corruption- blighted legal system and cutting red tape.
Indonesia is pressing for foreign investment to drive its economic growth to between 5 and 6 percent this year as private consumption slows down.
Last year, foreign investment approvals in Indonesia dropped 27 percent to $10.28 billion from $14.05 billion in 2003.
The country is expected to benefit from billions of dollars of aid and donor cash in the wake of the Dec. 26 tsunami which devastated Nanggroe Aceh Darussalam, leaving more than 234,000 people dead or missing.
Susilo said after talks with Malaysian Prime Minister Abdullah Ahmad Badawi on Monday that the two leaders hoped to identify new areas of economic cooperation soon and enhance cooperation in the palmoil industry.