RI, Japan to hold investment talks

RI, Japan to hold investment talks

TOKYO: The Japanese and Indonesian governments are getting
ready to resume negotiations aimed at reaching an investment
protection agreement, which have remained stalled since February
2001, the Nihon Keizai Shimbun reported in its Monday morning
edition.

The two nations are expected to announce the resumption of the
talks as early as Indonesian President Megawati Soekarnoputri's
visit to Japan, which begins June 22, the report said.

In 1999, they decided to begin negotiations on an investment
protection pact after the meeting of then-Prime Minister Keizo
Obuchi of Japan and then-President Abdurrahman Wahid of
Indonesia. Two rounds of talks were held in 2000 and 2001, but
the two sides could not agree on such matters as Indonesia
providing Japanese firms the same treatment as domestic
companies.

But now, they seek to resume the negotiations and sign an
investment protection agreement at an early date in order to spur
business activity, the report said.

During her visit, Megawati is expected to propose talks aimed
at reaching a free trade agreement (FTA) between the two
counties. But such talks will likely take time since many
government ministries and agencies will be involved, so some
government officials in both countries are calling for the
signing of an investment protection pact ahead of an FTA. -- Dow
Jones