Taiwan, RI advised to initiate joint projects
Taiwan, RI advised to initiate joint projects
JAKARTA (JP): A delegation of government officials from Taiwan
has suggested that Indonesia's and Taiwan's state companies
initiate joint projects to take advantage of that nation's
capital and technology.
Head of the Foreign Promotion Bureau of the Ministry of
Investment Asril Noer said yesterday after meeting with the 10-
member delegation, led by Kang Min-mou from Taiwan's Control Yuan
-- the highest supervisory organ of the nation -- that Indonesia
welcomed this proposal because Taiwan's state companies were
known to be sound and technologically advanced.
"Taiwan's large state firms include petrochemical and steel
plants, as well as fertilizer factories. I think cooperation with
them would be a good way for our state companies to expand their
business," Asril, who accompanied Minister of Investment/Chairman
of the Investment Coordinating Board Sanyoto Sastrowardoyo at the
meeting, said.
"This visit is in accordance with their government's
"southward policy" which encourages Taiwan's firms to increase
investment in Southeast Asia," he said.
A separate delegation consisting of 35 Taiwanese businessmen
are currently in Indonesia as well to meet government officials
and businessmen.
According to the AFP news agency, the Central Bank of China
will extend low-interest U.S. dollar loans to Taiwan's domestic
businesses to support this policy. Taiwan's investments in
Southeast Asia now total $14.5 billion.
Its trade with five members of the Association of Southeast
Asian Nations (ASEAN), excluding Brunei, reached $15.7 billion
last year. Its imports from those countries in that period were
worth $6.77 billion.
Batam
Asril said the delegation has shown particular interest in
investing in Batam Island.
"They have also expressed their intention to develop more
cooperation between the two countries' small and medium-scale
firms. This has become one of Taiwan's concerns because they
understand that Indonesia has to provide at least 2.4 million
jobs a year," he said.
According to Asril, the delegation, which arrived here on
Saturday for a four-day visit, will continue their trip to
Sarawak, East Malaysia, and the Philippines.
Taiwan's exports to Indonesia increased by 24.3 percent from
$849.24 million in 1990 to $1.05 billion in 1991. In 1992, the
figure rose by 21.1 percent to $1.27 billion but decreased
slightly by seven percent to $1.18 billion as of October 1993.
Taiwan's oil and non-oil imports from Indonesia have shown a
steady decrease from $1.34 billion in 1990 to $1.32 billion in
1991 to $1.29 billion in 1992. As of October last year, the
figure only reached $1.09 billion.
Taiwan's accumulated investment commitments in Indonesia from
1967 to February totaled $4.07 billion in 270 projects, making it
the third largest foreign investor in the country. (10)