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)