S. Korea set to continue Timor national car project
S. Korea set to continue Timor national car project
JAKARTA (JP): Visiting South Korean Minister of Foreign
Affairs and Trade Hong Soon-young met on Wednesday with President
Abdurrahman Wahid and other senior government officials and won
approval from them to continue the Timor national car project.
"Both Indonesia and South Korea feel the necessity to continue
the project as long as it does not contravene WTO (World Trade
Organization) rules," Minister of Foreign Affairs Alwi Shihab
said after accompanying the President in receiving Hong at the
Bina Graha presidential office.
Hong, who arrived here on Tuesday night for a three-day visit,
also met with Vice President Megawati Soekarnoputri and held
bilateral talks with Alwi.
Alwi said the government warmly welcomed the proposal as
Indonesia is in urgent need of large-scale foreign investment,
including from South Korea.
South Korea's KIA Motors entered the Indonesian market in 1995
in a joint venture with PT Timor Putra Nasional, which was co-
owned by former president Soeharto's son Hutomo "Tommy" Mandala
Putra.
The multimillion dollar national car project sparked strong
criticism and protest both at home and abroad, as it received
unfair facilities, including tax exemptions, from the government.
The project, overloaded by massive debts, practically
collapsed with the fall of Soeharto in May last year.
KIA reentered the market again early this month with a new
local partner, PT KIA Mobil Indonesia, whose chief commissioner
is former minister of transmigration Lt. Gen. A.M. Hendropriyono.
During Wednesday's meeting it was also revealed President
Abdurrahman would make another extended foreign trip.
Abdurrahman is due to go to Seoul as part of a 12-day overseas
tour at the end of January, which for now includes nine countries
among them England, Belgium, France, the Netherlands,
Switzerland, India and Pakistan.
"The overseas trip is expected to encourage more investment in
Indonesia as part of our economic recovery process," said Alwi.
Abdurrahman has been widely criticized for making too many
foreign trips abroad amid unresolved issues at home.
Since he was sworn in as president on Oct. 20, Abdurrahman has
visited 15 countries, including China, Japan, and the United
States. (04/prb)