RI investors encouraged to do mining in Australia

JAKARTA (JP): Australia is inviting Indonesian investors to do business in Australia's mining sector, while offering its technology to Indonesia's mining industry to help meet the rapidly increasing mining demands in the Asia-Pacific region.

"Indonesia and Australia are both well endowed with rich natural and human resources. And our stronger cooperation in the mining sector will maintain our position as the largest exporters of mining products in the region," visiting Australian Minister for Resources David Beddall told reporters here yesterday, a few hours before ending his four-day visit in Indonesia.

He said that even though the mining industry is a dominant sector in Australia, the country continues to need more capital for its development.

"There are a lot of opportunities for Indonesian companies to invest in the Australian mining sector," Beddall said.

He said that during a luncheon talk with the Indonesian Mining Association's executives here yesterday he had urged the group's members to expand mining operations in Australia to excavate mineral resources in isolated areas.

In return, Beddall said Australia will offer Indonesia its sophisticated technology for exploration and mining as well as its expertise in environmental management and mine rehabilitation.

He acknowledged that the two countries are competitors in export markets for some resource commodities, particularly liquefied natural gas (LNG) and coal.

Indonesia is the world's largest exporter of LNG, while Australia is the largest coal exporter.

But stronger cooperation in the mining industry will make Indonesia and Australia more dominant in supplying mining products for the region and the world market, said Beddall.

"It is the fact that the market is growing so rapidly in South East and North Asia," he said.

Australia, whose mineral and energy resources contributed around 30 percent to its total commodity exports last year, is the largest exporter of alumina, black coal, diamond and mineral sands in the world.

Beddall noted that Australia has already supplied equipment and services worth more than US$70 million for exploration, engineering, construction and mining activities in Indonesia.

The Investment Coordinating Board (BKPM) reported that Australia's investment during the period of 1967 through Oct. 15 this year reached US$2.01 billion. (fhp)