S'pore launches RI aid scheme

S'pore launches RI aid scheme

SINGAPORE (AFP): Singapore on Friday launched a S$400 million (US$235.3 million) finance scheme to encourage local companies to invest in Indonesia.

The scheme is run by the Economic Development Board (EDB), Singapore's state investment promotion arm and caters to both large companies and small and medium enterprises which have at least 51 percent local equity.

The EDB said in a statement loans under the scheme would be used to finance factory, machinery and equipment investments by Singapore companies into Indonesia.

Singapore Prime Minister Goh Chok Tong during his visit to Jakarta last month had offered the loan assistance scheme to encourage local companies to invest in Indonesia.

Goh said Singapore wanted to help accelerate Indonesia's economic recovery following political and economic turmoil stemming from Asia's financial crisis which erupted in mid-1997.