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