Indonesia offers S'pore 3 sectors for investment

choongyong.koh — Tue, 05 Sep 2006 02:04:49 -0000

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Indonesia offers S'pore 3 sectors for investment

Date: 07/08/2006
Source: Straits Times
Author: Ken Kwek

VISITING Indonesian President Susilo Bambang Yudhoyono yesterday offered Singapore businesses opportunities in three key areas his country is keen to develop: infrastructure development, biofuels and special economic zones (SEZs).

Singapore can play a part as Indonesia undergoes serious reform to raise economic growth, he said during a lunch talk with businessmen, chaired by Singapore's Trade and Industry Minister Lim Hng Kiang.

The president, who is on a two-day working visit in Singapore, said Indonesia offered opportunities in infrastructure development, such as power, toll road systems and housing.

He invited Singapore's leaders and businessmen to attend an infrastructure summit in Jakarta in November to exchange ideas and seek investment opportunities.

The Indonesian leader also said Singapore could play a part in Indonesia's efforts to increase biofuel production. The Indonesian government recently announced plans to build eight biodiesel factories, to produce energy alternatives to fossil fuels, such as biodiesel from oil palm.

Dr Yudhoyono asked Singapore companies to invest in biofuel projects, adding that he was also looking at introducing new policies in the financial sector to encourage capital investment in certain areas.

As for the recent agreement between Indonesia and Singapore to set up SEZs on the islands of Batam, Bintan and Karimun, Dr Yudhoyono indicated that progress was underway. For example, the joint working groups and committees, comprising representatives from both countries, had met and were working on an 'action plan' to stimulate greater investment.

He added that he had already given 'clear directions' to his officials to streamline services for businesses, by reforming Indonesian government agencies such as the customs, tax and immigration offices in Batam.

The SEZ agreement was inked when Dr Yudhoyono and PM Lee last met in Batam on June 25.

Both leaders agreed to promote the islands' manufacturing potential, ease the flow of goods, manpower and funds, and train workers and administrators.

The SEZ was one of the issues that cropped up when the president and PM Lee had a 'four-eye' meeting before dinner. A statement from the Prime Minister's Office said the two leaders discussed bilateral issues. They affirmed the importance of making progress on the parallel negotiations for a series of agreements on an extradition treaty, defence cooperation and counter-terrorism cooperation. They also discussed international issues, including the situation in the Middle East and developments in Asean.

Dr Yudhoyono also met Minister Mentor Lee Kuan Yew in the evening.

During his visit here, the president took pains to assure the Singapore business community that Indonesia was serious about reform to improve the business climate and expand its economy.

The president, accompanied by his wife Kristiani Herawati and a delegation including Economic Coordinating Minister Boediono and Foreign Affairs Minister Hassan Wirajuda, leave for home today.

kenkwek@sph.com.sg

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Indonesia offers S'pore 3 sectors for investment