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.