S'pore earmarks $10 billion for RI infrastructure
S'pore earmarks $10 billion for RI infrastructure
JAKARTA (JP): Singapore has allocated US$10 billion out of its foreign exchange reserves of some US$80 billion for infrastructure investments in Indonesia, according to an official.
Indonesian Ambassador to Singapore Soedibyo Rahardjo said yesterday that Singapore earmarked the funds last September but the money had remained idle because suitable local partners have not yet been found.
Soedibyo said the funds would be channeled through Singaporean state enterprises, while the Indonesian partners could be either state or private companies.
"We hope that this year some of the funds can be disbursed for a number of projects here ... Indonesian businessmen should grab the opportunity", he told journalists after attending a meeting between Indonesian and Singaporean business people.
A 68-member delegation from Singapore, led by president of the Singapore Federation of Commerce and Industry, Robert Chua, started its four-day mission yesterday. The delegation is in Indonesia to explore investment opportunities.
Chua said Singaporean companies found Indonesia a very attractive place for investment because, he said, "Indonesia has seriously changed its climate to make it very attractive".
"They are very interested to see changes that are taking place here, especially those concerning deregulations and investment laws," he added.
The Indonesian government, which has introduced a series of deregulatory measures in the past years, is currently drafting a new investment bill to replace two existing laws, which still impose different rules on domestic investors, on one hand, and foreign investors1, on the other.
Such differential treatment is contradiction with the provisions of the new General Agreement on Tariffs and Trade, which came into effect on Jan. 1 this year.
The Singaporean delegation also met, yesterday, with Coordinating Minister for Industry and Trade, Hartarto; Minister of Industry, Tunky Ariwibowo; and Minister of Investment/ Chairman of Investment Planning Board, Sanyoto Sastrowardoyo.
Today, the delegation is scheduled to pay a courtesy call on President Soeharto, before leaving for Surabaya, East Java, to sound out investment opportunities in the province.
According to Sanyoto, Singapore has thus far invested US$7.1 billion in Indonesia. Last year, Singapore recorded investments of $1.6 billion, up 14 percent from the previous year's $1.4 billion.
Sanyoto said he was sure that this year Singapore's investments would continue to increase.
Concurring with Sanyoto, Chua, who is also president of the Singapore Manufacturers Association, said: "I believe, as a result of the mission, there will be more companies investing in Indonesia, especially in the manufacturing sector".
Soedibyo said that Singapore, being an island country, lacks manpower and natural resources and therefore looks to Indonesia.
"It's complementary cooperation, anyhow. Singapore has the money, while Indonesia has abundant manpower and natural resources", Soedibyo said. (rid)