Taiwan asked to facilitate capital flow to RI
By Meidyatama Suryadiningrat
TAIPEI (JP): The Indonesian Chamber of Commerce and Industry (KADIN Indonesia) yesterday asked Taiwanese Prime Minister Lien Chan and Minister of Finance Lin Chen-Kuo to solicit support to facilitate investment to Indonesia.
"I asked their help in smoothing the flow of investments from Taiwan to Indonesia," Kadin's chairman, Aburizal Bakrie, told reporters following meetings with Lien and Lin here.
Aburizal is currently heading a delegation of some 60 prominent businessmen to establish commercial contacts and lobby government officials in Taiwan.
"The Prime Minister welcomes the close cooperation between the two countries since it is in line with Taiwan's 'Go-south' policy," he said.
Taiwan has launched a policy of investing to the Southeast Asian countries in a conscious effort to divert investments from mainland China.
Behind Japan and Hong Kong, Taiwan is the third largest investor in Indonesia with total investments in excess of US$8.5 billion. During a meeting with President Lee Teng-hui on Monday, Lee affirmed Taiwan's commitment to invest a total of $15 billion by the middle of next year.
"The Prime Minister said that both countries have something to offer each other and that they complement one another," Aburizal said.
Difficulties
In a separate meeting with Minister of Finance Lin Chen-Kuo, Aburizal conveyed a number of difficulties hindering investment cooperation between the two countries.
Aburizal said he had appealed to Lin to allow more than two Taiwanese banks to set up offices in Jakarta.
"Trade follows the banks," he reasoned.
Another matter brought up during the meeting was the disagreement over the terms set on Taiwan's planned soft loan to Indonesian cooperatives and small enterprises in North Sumatra. Though the loan was allocated last year, it has still not been disbursed due to a disagreement over terms
The planned 20-year loan will provide $10 million in funds with an interest rate of 2.5 percent per annum and a grace period of three years.
Aburizal explained that Indonesia cannot accept the terms since a Presidential decree stipulates that the loan must at least be for 25 years with a grace period of 5 years.
"I asked the minister to give us some leeway on this matter," he said, adding that the finance minister is considering the suggestions.
Since Indonesia does not have diplomatic relations with Taiwan, the government loan is being handled by Bank Indonesia and Bank Bukopin.
"That's why Mochtar Mandala is here," Aburizal said referring to the president of Bank Bukopin.
Last night, the two countries' chambers of commerce also signed a memorandum of understanding to forge greater cooperation and facilitate the needs of businesses in the two countries.
The agreement was signed during a reception at the residence of the chairman of the Chinese National Association of Industry and Commerce, Jeffrey Koo.
The two chambers also agreed to establish committees to oversee the commercial interests of both countries. Indonesia's Taiwan committee will be headed by businessman Pontjo Sutowo.