S. Korea promises to hike investments in Indonesia
S. Korea promises to hike investments in Indonesia
JAKARTA (JP): South Korea will increase investments in the
development of seaports, roads and the automobile and electronics
industries in Indonesia, President Kim Young-Sam said yesterday
after meeting with President Soeharto for about two hours.
The Korean leader told Indonesian and Korean businessmen at a
luncheon meeting that his talks with Soeharto greatly enlightened
him on the wide opportunities for further deepening and expanding
bilateral economic cooperation.
"During the meeting, Mr. Soeharto briefed me on the Second
Stage of Indonesia's Long-Term (25 year) Development," said
President Kim, who arrived here on Saturday for a two-day visit
before attending the APEC leaders meeting in Bogor on Tuesday.
The luncheon meeting at the Shangri-La Hotel was hosted by the
Indonesia-Korea Economic Cooperation Committee in honor of Kim.
It was also attended by Indonesia's Coordinating Minister for
Economic and Financial Affairs, Korean ministers and hundreds of
Indonesian and Korean businessmen.
"As you well know, Korea is internationally competitive in the
electronics, steel, shipbuilding, automotive and many other
industries, while Indonesia has abundant natural resources and
manpower," he pointed out.
Korea is already Indonesia's sixth largest trading partner
with two-way trade reaching almost US$5 billion. It is the sixth
largest foreign investor in Indonesia.
Kim said he was glad that more than 350 Korean companies are
now operating in Indonesia with total employment in excess of
300,000.
He also referred specifically to the startup next year in the
construction of Korea's first car plant in Indonesia, where the
automobile market has been dominated by Japanese makes.
"We expect more Korean investors," said Aburizal Bakrie,
Chairman of the Indonesian Chamber of Commerce and Industry.
Kim noted that his country, the second Asian member of
Indonesia's creditor consortium -- the World Bank-chaired
Consultative Group on Indonesia -- also has been providing
development aid.
Full supports
Meanwhile, Minister/State Secretary Moerdiono told newsmen
after the Kim-Soeharto talks yesterday morning that the Korean
leader fully supports President Soeharto's initiatives for the
conference in Bogor.
"President Kim pledged to do his best to make the summit a
great success because APEC is for the good of all its member
economies," Moerdiono said.
He added that Soeharto also briefed Kim on the future
development of the Natuna natural gas field, estimated to hold
more than 150 trillion cubic feet.
Indonesia is now the world's largest exporter of liquefied
natural gas, with annual shipments to Japan, Korea and Taiwan
totaling 24 million tons.
Earlier, at a state banquet on Saturday, hosted in honor of
President Kim, Soeharto praised Korea's impressive economic
success.
The Korean success, Soeharto noted, "has enhanced the spirit
and strengthened the self confidence that Indonesia is also
capable of achieving rapid progress if we work hard and
diligently."
He expressed confidence that given their respective
potentials and the existing opportunities, Indonesia and Korea
will further expand and deepen their economic relations.
President Kim Young-Sam also welcomed the impressive expansion
of economic ties between the two countries.
Kim said Indonesia is now the third largest destination for
Korean overseas investments.
"I think there is a great potential for further cooperation
due to the complementary nature of our two economies," President
Kim said.
He saw the role of both countries as a bridge between the
developed and developing economies of the Asia-Pacific region.
(vin)