Taiwan hopes Indonesia maintains security

Taiwan hopes Indonesia maintains security

JAKARTA (JP): Taiwanese businesspeople expressed hope on
Thursday the new Indonesian government would bring fresh impetus
for their investment in the country.

The representative of the Taipei Economic and Trade Office,
Lin Sui-Chi, said he hoped Indonesia could maintain the security
and political stability which followed the election of President
Abdurrahman Wahid.

Chi said security and political stability were necessary
ingredients for Indonesia to attract foreign investment.

"Indonesia needs to give comfort to the existing foreign
investors so they will continue to contribute to the country's
economy," Chi said.

Foreign investment in the country suffered tremendously
following violent social upheavals which forced the resignation
of president Soeharto in May 1998.

After Soeharto stepped down, the volatility of the country's
political situation frightened away foreign investors, who
questioned the security of doing business in the country.

Chi hoped the new government under Abdurrahman would be able
to create a level of security which would encourage business
ventures.

The Indonesian government must be determined and committed to
improving the country's investment environment, Chi said.

He said Taiwan's accumulated investment in Indonesia from 1967
to Sept. 30 this year stood at US$16.7 billion.

Chi said he was optimistic the flow of direct investment from
Taiwan to Indonesia would pick up in the coming months on the
back of the relatively stable political situation in Indonesia.

The pulp and paper, and textile industries account for some
$10.6 billion and $1.1 billion of Taiwan's investment in
Indonesia, respectively. The remaining $5 billion is spread among
the service, trade, real estate, fishery and plantation
industries.

Taiwan is the fifth largest investor in Indonesia, following
Japan, the United Kingdom, Singapore and Hong Kong.

He said the Taiwanese government would fully support the
country's small garment and electronics businesses which wished
to form joint ventures with small Indonesian businesses.

"We will endeavor to help small to medium-size Taiwanese and
Indonesian businesses come together to build factories in
Indonesia," he said during a seminar on foreign investment in
Indonesia.

The seminar was organized by the Taiwan Economic and Trade
Office in cooperation with the office of State Minister of
Investment and State Enterprises Development Laksamana Sukardi.

Laksamana said he was committed to further deregulating
investment by eliminating policies which hampered foreign
investment.

"Investment policies will be totally reformed so that there
will be no barriers to foreign investors," he said during the
seminar, which also was attended by Minister of Manpower Bomer
Pasaribu, Jakarta Police chief Maj. Gen. Noegroho Djajoesman and
labor union activist Mukhtar Pakpahan.

He said the government was not only committed to providing a
conducive investment environment, but also to enabling foreign
investors to appropriately assess business risks in Indonesia.

"Foreign investors are an important part of the Indonesian
economy," he said.

Bomer praised the Taiwanese government's gesture of
eliminating its quota on Indonesia workers entering Taiwan.

"We are glad to hear the Taiwanese government abolished the
quota on Indonesian citizens working there," Bomer said.

"Currently, there are 41,300 Indonesian citizens working in
Taiwan," he said. (udi)