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NEWS ADMIN

Mahamad Rodzi Abdul Ghani

DATE

27/09/2004

NEWS PROVIDER

Mahamad Rodzi Abdul Ghani

NEWS SOURCE

Bernama

CATEGORY

HEADLINE

MALAYSIA TO REMAIN A MAJOR INVESTOR IN INDONESIA
KUALA LUMPUR, Sept 24 (Bernama) -- Malaysia will continue to be among thetwo biggest investors in Indonesia from the Southeast Asian region,S.E. Sugiyono, an Indonesian investment official, said today.He said that up till July 2004 this year alone, Malaysians hadinvested in 85 projects in the country worth US$135.5 million, mostly inthe palm oil and electronics sector.Last year, Malaysians invested in 154 projects worth US$692.4 millionwhile in 2001, investments amounted to US$2.241 billion through 106projects."Malaysia has always been consistent in investing in Indonesia evenduring the tumultous periods," said Sugiyono, who is the Director ofPotential Resources Development and Infrastructure, InvestmentCoordination Organisation under Indonesia's Ministry of Settlements andRegional Infrastructure.He was speaking to reporters at the sidelines of the "Forum BusinessKAPET Indonesia", here today.KAPET is an integrated development zone established to accelerateeconomic development particularly in the Eastern Indonesian region. Thezone is administered by the Ministry of Settlements and RegionalInfrastructure.Encouraging Malaysians to invest in KAPET, Sugiyono said that the areaoffered tremendous potential to investors as the eastern part of Indonesiahad remained largely unexplored.He said the Indonesian government also offered various incentives suchas tax exemptions on value added and luxury goods.Other incentives include exemption on income tax article 22 onimported capital goods and machinery related to the extension of Bondedzones."Language and geography barrier is almost non-existent and thegovernment will assist in providing one stop services for generalinformation, law and licensing services, man power recruitment, taxationand other administrative services," Sugiyono said.He pointed out that fisheries, particularly in the Sulawesi areas,offered the biggest potential while natural resources in agro-industry,forestry, mining and industrial estates were other potential sectors.Along with these, there are also investment opportunities in thedevelopment of infrastructure and facilities such as toll roads, bridges,harbour, airport, electricity, water supply and other utilities, he said.More detailed information on the projects and the procedures of theinvestment are available at the www.kapet.org, he said. For enquiries,potential investors could also e-mail to promo-investasi@cbn.net.id.The Forum Business KAPET Indonesia today was held in conjunction withthe ongoing Indo-Asia Expo Trade and Tourism which was officially openedyesterday at the Mid Valley Exhibition Centre here.Small and medium enterprises (SME) under Indonesia's Ministry of StateEnterprise Empowerment, provincial governments, KAPET's directorates,regional industrial and trade regional offices are among some ofparticipants at the four-day event. -- BERNAMA