Taiwan promises increase in investment in RI
Taiwan promises increase in investment in RI
By Meidyatama Suryodiningrat
TAIPEI, Taiwan (JP): Taiwan President Lee Teng-hui promised
visiting executives of the Indonesian Chamber of Commerce and
Industry (Kadin) here yesterday his country's investments in
Indonesia would rise to US$6.5 billion within the next 12 months.
"President Lee expressed his desire that Taiwan's
accumulative investment in Indonesia reach a total of $15 billion
by the end of the year or at the latest by the middle of next
year," Kadin chairman Aburizal Bakrie said following a 30-minute
meeting at the presidential palace.
A group of 60 Indonesian businessmen are currently in Taipei
to establish contacts with potential Taiwanese investors.
Despite having no diplomatic relations, Taiwan is one of
Indonesia's biggest sources of investment, with a cumulative
total of $8.5 billion.
In the first six months of the year, Taiwan was committed to
establishing Indonesian projects with total investments of $2.4
billion.
Relations between the two countries have continued to blossom
with President Lee's holiday in Bali last February, during which
he met with President Soeharto by chance.
"He (Lee) is very concerned about development in Indonesia,"
Aburizal said.
Aburizal further revealed that in August President Lee will
assign a special governmental team to survey rural development in
Indonesia.
"There are a lot of things we can learn from them," said
Pontjo Sutowo, head of Kadin's Indonesia-Taiwan Economic
Cooperation Committee.
He pointed to Taiwan's success in converting an agricultural
society into an industrialized one without uprooting the people
through transmigration programs as done in Indonesia.
When queried on the most potential areas of investment,
Aburizal said there were many possibilities in a wide range of
fields.
He said that Lee identified cement as an extremely potential
area since Taiwan's need is increasing, and Indonesia owns a
large deposit of limestone.
The conditions are even more favorable for Indonesia in this
field due to the planned closure of two cement factories in
Taiwan in the next few months.
Other areas mentioned as likely sectors for development are
petrochemicals and agribusiness.
However, Aburizal was quick to add that he had stressed to
President Lee the importance of not neglecting investments in
small and medium scale industries.
This is an important point because Taiwan's economic strength
lies in small and medium scale businesses, Aburizal said.
He added that the possibilities of development in Indonesia's
eastern provinces was also discussed.
Cement factory
As part of realizing development in the eastern provinces,
Indonesia's Djajanti Group and the Taiwanese Kung Hua company
will sign a memorandum of understanding on constructing a cement
factory in Maluku.
Quoting the president, Aburizal said that Lee not only wanted
to boost Taiwan's investment commitments in Indonesia but also to
realize as many of them as possible.
Based on BKPM statistics, only an average of 50 percent of
investment commitments are realized.
He doesn't want them to just remain on paper, Aburizal said.
When asked whether President Lee had mentioned any drawbacks
to investing in Indonesia, Aburizal said Lee had not remarked on
any negative aspects at all.
"Neither labor nor racial issues were touched on by President
Lee," he said.
Aburizal also said that he conveyed to Lee Kadin's desire to
become good partners to Taiwanese investors coming to Indonesia.
The Kadin delegation is slated to meet with Prime Minister
Lien Chan and several cabinet ministers today.