Soeharto, Goh agree to boost ASEAN ties

JAKARTA (JP): President Soeharto and Singapore Prime Minister Goh Chok Tong agreed yesterday to enhance economic cooperation between the seven ASEAN nations.

The agreement came during a private meeting on Karimun Island, Riau.

State Secretary Moerdiono was reported by Antara as saying that the two leaders reiterated the importance of strengthening ties between ASEAN nations, especially with the pending entry of Cambodia, Laos and Myanmar.

"When ASEAN covers 10 countries, there will be a market of more than 500 million people," Moerdiono quoted Soeharto as saying.

ASEAN groups Brunei, Indonesia, Malaysia, Singapore, Thailand, the Philippines and Vietnam.

Apart from discussing ASEAN issues, Soeharto and Goh launched a giant marine and industrial complex.

The Karimun Marine and Industrial Complex is the third major industrial project developed by the Singapore and Indonesian private sectors.

Singapore and Indonesia already have industrial parks and resort projects on Riau's Batam and Bintan islands.

Investment in the complex is expected to reach US$142.8 million over the next 10 years. About half of it is already in place in the project's first phase which covers 155 hectares.

The complex is designed to be a marine and industrial hub for heavy engineering, marine and petroleum-related industries with integrated infrastructure support.

Soeharto and Goh also opened the PT Karimun Sembawang Shipyard, a joint venture between Singapore's Sembawang Corp. and Indonesia's Salim Group.

Soeharto said Singapore and Indonesia had their respective potential and resources plus other complimentary advantages.

"And when they are appropriately harnessed, they become a big boost for the economies of the two countries in particular, and this region in general," he said.

Soeharto said cooperation with Indonesia would allow Singapore to overcome its lack of land, natural resources and manpower. Indonesia has 200 million people, while Singapore has just three million.

He said industry was now the Indonesian economy's prime mover and that maritime and offshore construction industries were important to Indonesia's national shipping fleet and oil exploration efforts.

Goh said Karimun island offered easy access via the Strait of Malacca, deep waters capable of accommodating very big crude carriers, cheapness and was close to Singapore, which is the region's shipping hub.

Direct investment by Singaporean companies in Indonesia reached S$4.03 billion (US$2.82 billion) in 1995, up from $2.36 billion in 1994. (pwn)

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