Fri, 29 Aug 1997

S'pore opens trade office to boost bilateral trade

JAKARTA (JP): Singapore's Trade Development Board officially opened yesterday its Jakarta office to enhance bilateral relations with Indonesia.

Speaking at the opening ceremony of the board's office, Indonesia's Minister of Trade and Industry Tunky Ariwibowo said the new branch would have an important role in increasing bilateral trade between the two countries.

"Singapore is our third largest trading partner after Japan and the United States. The new office will improve our trade relationship and could benefit our economy," he said.

The Singapore Trade Development Board has over 30 overseas offices to help Singaporean companies identify suitable overseas business partners and assist further expansion.

Singapore's Minister of Trade and Industry Lee Yock Suan said at the opening ceremony the prospect of bilateral cooperation between the two countries was bright.

"Indonesia is one of the most attractive destinations for Singaporean investors to venture and build an external wing for Singapore's economy," Lee said.

Indonesia's abundant natural resources and huge market of over 200 million people, about 18 million of whom belong to the middle-class, had lured international investors and businesses, he said.

He said the commitment of Indonesia' government to modernize and deregulate its economy also offered investment and trade opportunities in almost every sector.

"Indonesian fundamentals are strong enough for us to mutually benefit each other from a more intense bilateral trade relationship," he said.

Chief Executive of the Singapore board, Barry Desker, said yesterday the trade development board had recently identified new investment opportunities in the health care, design, food processing and agricultural sectors.

The majority of his country's investment in Indonesia was in manufacturing and services, he said.

The board is leading 49 Singaporean firms in a trade mission in Indonesia to explore new business ventures in various sectors including estate development, franchising, financial services, port development and trade logistics.

Data from Indonesia's Central Bureau of Statistics said its exports to Singapore hit a record high of US$4.6 billion last year, up from US$3.7 billion the previous year.

Exports mainly consisted of petroleum products, ships and boats, tins, natural rubber and electrical machinery.

Indonesia's imports from Singapore grew from $1.3 billion in 1990 to US$2.9 billion in 1996. Imports mainly consisted of hydrocarbons, telecommunications equipment and parts and pulp and waste pulp.

Singapore is Indonesia's third largest foreign investor after Japan and Britain. In the last five years, Singapore's investment in Indonesia surged to US$3.13 billion in 1996 from US$166.1 million in 1991. (das)