Taiwan will boost RI investment

JAKARTA (JP): Taiwan plans to increase its overall investments in Indonesia by US$3.2 billion to $10 billion next year, says the head of Taiwan's trade representative office here, Alexander S. Chen.

Official figures show that Taiwan's investments in Indonesia within the first eleven months of this year reached $2.48 billion.

Data from the Investment Coordination Board (BKPM) also show that the cumulative amount of Taiwan's investments in Indonesia since 1967 reached $6.83 billion as of the end of November, making it Indonesia's seventh biggest foreign investor.

Chen said that Taiwan hopes to take advantage of the various opportunities it has to do businesses in Indonesia.

"Next year promises a bright prospect for Taiwan to raise investments into Indonesia," he said on Thursday as quoted by Antara.

"All the deregulatory policies that the Indonesian government introduced this year will take full effect next year," he added.

Indonesia this year significantly deregulated its investment policies. This was evidenced by Government Regulation No. 20/1994 introduced in June, which allows 100 percent foreign ownership, eases requirements on divestment and allows foreign investors to build and operate infrastructure facilities.

BKPM announced earlier this month that foreign investments approved by the government increased by 194 percent to a record high of $23.7 billion this year and that foreign investment realization in 1995 will be even higher.

Chen also said that Taiwan, like in the previous period, will prioritize investments in the medium and small scale industries, especially those for the manufacturing of components.

"This is because our own economy is founded on the medium and small scale industries," he said. (hdj)