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)