Susilo hopes for more Australian investment
Rendi A. Witular, The Jakarta Post, Sydney
President Susilo Bambang Yudhoyono concluded his three-day state visit to Australia on Tuesday by holding a number of discussions with local prominent business leaders in an attempt to lure more Australian investment into Indonesia.
The meeting was staged amid a plan by a number of Australian companies to invest some A$2 billion (US$1.8 billion) in Indonesia this year.
During a discussion with five Australian companies and one U.S.-based consulting firm, Susilo underscored the government's seriousness in addressing a number of business obstacles encountered by foreign companies in the country.
The companies are BHP Billiton Limited, ANZ Banking Group, Orica Limited, Futuris Corp, Newmont Australia and PriceWaterhouseCoopers.
"I have heard their complaints, as well as conveyed my pledge once again to address investment problems that they have encountered in Indonesia as soon as possible. Their complaints are our utmost priority," Susilo told a press briefing after the meeting.
"I don't only give them my word but real action. We will accommodate the needs of the Australian business community, especially when the two countries have sealed a landmark legal frame for future cooperation," he said.
Susilo reiterated that most of the companies' complaints were common ones, such as corruption, decentralization, labor regulations and weak bureaucracy.
Prior to the meeting, Coordinating Minister for the Economy Aburizal Bakrie said some of the six companies needed to meet the President because they intended on investing some A$2 billion in Indonesia soon.
"The meeting was held to ensure that Indonesia is committed to addressing protracted problems that have undermined investor confidence in the country. The businessmen want Susilo to directly hear their problems in Indonesia," he said.
Aside from a fairly successful meeting with the Australian private sector, Susilo's visit was an important hallmark for both countries to seriously explore the possibility of sealing a free- trade agreement (FTA) in the near future, as well as forming the so-termed Greater East Asian economic pact.
"The target of my visit, in (terms of) the economic sector is to seal key bilateral cooperation and help lure investment from the Australian private sector. The outcome has been very productive and we expect more developments soon," said Susilo.
He said that although there were no serious talks between both countries on the FTA issue, ministers of the two countries agreed to conduct research on the FTA.
"There has been no formal talk between me and Australian Prime Minister John Howard on the FTA issue, but the direction of our economic cooperation is toward such an agreement," he said.
According to Minister of Trade Mari E. Pangestu, the two countries are now holding back on the agreement while considering all sides of it.
She said the recent agreement on Comprehensive Partnership between the two countries would ease the process toward the trade agreement.
"We are optimistic that such an agreement will be signed by the two countries, after we agreed to make our relationship closer and stronger," she added.
Susilo will fly to New Zealand on Wednesday to forge more agreements on the economy, politics and education.