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)