Saudi Arabia agrees to step up investment, trade with Indonesia

Saudi Arabia agrees to step up investment, trade with Indonesia

Antara, Jeddah, Saudi Arabia

Indonesian Vice President Hamzah Haz disclosed here on Sunday
evening (Monday morning in Jakarta) that the Kingdom of Saudi
Arabia has agreed to step up investment and trade relations
between the two countries.

"The Kingdom of Saudi Arabia sees no problem in the efforts to
step up investment and trade cooperation with Indonesia," Hamzah
told reporters.

The Indonesian vice president issued a statement to that
effect, following a meeting with King Fahd bin Abdul Aziz Al-
Saud, First Deputy Premier/Head of National Defense Crown Prince
Abdullah bin-Abdul-Aziz Al-Saud, and the management of the
Islamic Development Bank (IDB).

In his meeting with Crown Prince Abdullah, Hamzah among other
things touched on the need to conclude a cooperation on
investment and trade.

According to him, the Saudi Arabian leaders also expressed
their readiness to help Indonesia in international trade
activities.

However, Hamzah made it clear that the Saudi Arabian cabinet
will have the final say on the investment and trade cooperation.

Economic relations between Saudi Arabia and Indonesia has
increased since 1982.

A joint commission has been convening periodic meetings to
evaluate the performance of the economic cooperation.

Until December 2001, the Saudi Arabian investment in Indonesia
had been increasing, due to improved investment climate in
Jakarta.

Saudi Arabian investors are mostly interested in the chemical
industry, hotels and restaurants, housing, general trade,
transportation, communication and metal industry.

To encourage Saudi Arabian investment in Indonesia, the first
meeting on protection of investors was held on Feb. 13, 2002.

For project financing, Indonesia has received US$233.79
million from the Saudi Fund for Development.

Speaking about his meeting with the management of the Islamic
Development Bank, Hamzah said he had asked the bank to step up
its role in assisting Indonesia's economic recovery and progress.