RI investment mission to visit South Korea

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)