RI looks east for investment offers

JAKARTA (JP): Indonesia is looking east in an attempt to solicit investment and reduce its long-standing dependence on western aid.

Minister of Foreign Affairs Alwi Shihab, fresh from a tour of Middle Eastern countries, said on Monday Indonesia planed to host a high-level meeting of Gulf and Asian states here next month in an attempt to establish a special economic fund for the country.

Alwi said 12 Asian and Gulf countries had agreed to send ministers to the meeting on May 3 to discuss establishing new agreements that could enhance investment in Indonesia.

"The target of the meeting is to set up a 'Gulf fund', sort of like the fund from the International Monetary Fund, concentrating on business investment in Indonesia," Alwi told journalists. He added that the meeting would also be an opportunity for the private sector from the Gulf countries to meet with the Indonesian Bank Restructuring Agency to discuss investment opportunities.

The countries to be invited to the meeting are the six nations of the Gulf Cooperation Council -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- and Iran, Yemen, Brunei, Malaysia and Singapore.

Singapore will hold a special seat at the meeting and assist Indonesia in deciding which business opportunities and types of investment are favorable for the Gulf countries.

"We all know that Singapore is great in dealing with and deciding on investment, so we will ask Singapore to help us," Alwi said.

Alwi maintained inviting the ministers to the meeting was part of the effort to present the true situation in Indonesia.

"In the meeting, we are looking for something more than just loans from these countries, but an assurance of long-term investments. Hopefully we can even accomplish preliminary transactions during the meeting," said Alwi, adding that several of the invited countries had shown interest in the country's mining industry and state enterprises, including the privatization of airports.

Alwi conceded the plan to meet with Middle Eastern and Asian countries was also meant to reduce Indonesia's dependence on western countries.

"We would like to correct the perception that we are too dependent on the West, (show) that we can also have a close relationship with Gulf states."

Coordinating Minister for the Economy, Finance and Industry Kwik Kian Gie, House of Representatives Speaker Akbar Tandjung and People's Consultative Assembly Speaker Amien Rais are among the top officials due to speak at the meeting.

Alwi stressed this was a wonderful opportunity to reach as yet untapped investors, namely petro-dollar countries.

"They have the money, we have the opportunities, so let's combine them," he remarked. (dja)