S'pore minister to sign US$7b deal in Indonesia

S'pore minister to sign US$7b deal in Indonesia

SINGAPORE (AFP): Singapore Minister for Trade and Industry George Yeo will make a four-day visit to Indonesia starting Sunday to drum up new investment opportunities, the government said Friday.

"The aim of the visit is to enhance Singapore's bilateral ties with Indonesia and to explore new business opportunities," the ministry of trade and industry said in a statement.

Yeo will hold talks with Indonesian leaders and meet up with Indonesian and Singaporean businessmen.

Yeo's visit will also include the signing of a natural gas sales agreement between Singapore Power and Pertamina in Jakarta, the ministry said.

The contract, the second between the two countries, is expected to be worth seven billion dollars over a 20-year period and is set to be the highlight of Yeo's visit.

It involves the delivery of natural gas from the South Sumatra gas fields in Indonesia to Singapore.

Last month, the two countries launched a joint multibillion- dollar project to supply natural gas from Indonesia's West Natuna fields to the city-state via a 656-kilometer (406-mile) undersea gas pipeline.

Ties between the two countries have gradually improved over the last few months following visits by top Indonesian officials and President Abdurrahman Wahid after the Indonesian leader launched a scathing attack on the rich city-state last year.