Taiwan to set up industry in Medan

Taiwan to set up industry in Medan

TAIPEI (Reuter): Taiwan's government has decided to invest
some US$15 million to set up a 70-hectare (173-acre) industrial
zone for Taiwanese and local firms in Medan on the Indonesian
island of Sumatra, an official said yesterday.

The official with the economics ministry's International
Economic Cooperation Development Fund (IECDF) said Indonesia's
government had agreed to the plan and construction would start in
May.

She said the IECDF hoped that more than 60 Taiwanese firms
would invest over US$200 million there. So far seven have applied
to use a total of 15 percent of the land.

The official, who declined to be identified, said the zone
would help Taiwanese diversify their investments, particularly
away from China with whom political relations are worsening.

A U.S. newspaper report last week said China has plans for a
"limited attack" on Taiwan after presidential elections on March
23. China stopped short of denying the report.

The official said the fund would offer 70 percent of the US$15
million and the other 30 percent would be put up by the Taiwan
industries interested in the project. It is expected to be
completed some 15 months after construction begins.

From April 1 the IECDF will be converted into a non-profit
organization, the International Cooperation Development Fund. It
will grant loans to small- and medium-sized businesses from
developing countries, said an IECDF director.

The IECDF, to be supervised by the Foreign Ministry, will also
grant loans to increase cooperation between Taiwan companies and
small and medium-sized businesses.