RI investment mission to visit South Korea

JAKARTA (JP): The Investment Coordinating Board (BKPM) will send an investment mission to South Korea from May 19-24 to promote business opportunities in Indonesia, particularly in the production of automotive components to support the government's national car program.

"We will try to persuade more Korean businessmen to invest in the automotive component industry," State Minister of Investment Sanyoto Sastrowardoyo was quoted by Antara as saying yesterday.

"Our visit is actually aimed at promoting business opportunities in all sectors but we will encourage them to invest in the automotive component sector," Sanyoto added.

He said that the automotive component industry has become more attractive since the government issued a new policy in February on national car production.

The controversial presidential decree No. 2/1996, on the national car program, stipulates that within the first three years of operation, a domestic automaker which uses 60 percent local contents in its car production will get import duty and luxury tax breaks.

The government thus far has licensed only PT Timor Putra Nasional, which is controlled by President Soeharto's youngest son, Hutomo Mandala Putra, in the program.

"It is the reason why we expect more investors will enter this automotive component sector," he said.

Sanyoto, however, declined to explain why he preferred South Korea to other countries. However the trip could be linked to the fact that Timor Putra's partner is KIA Company of South Korea.

A BKPM official said that the mission will also include representatives from Timor Putra and some executives of the association of automotive component makers. (08)