Index

 18 March 2006

 
Yudhoyono courts Brunei investors, eyes stronger trade relations
Jakarta Post

President Susilo Bambang Yudhoyono met Tuesday with top economics officials in Brunei Darussalam for talks aimed at increasing investment and trade between the two countries.

The President invited Brunei's business community to invest in proposed infrastructure projects across Indonesia, and explained the steps the Indonesian government was taking to improve the business climate at home, which has been acting as a constraint on investment.

He met with senior officials from the Brunei Investment Agency, Energy Ministry and Economic Development Board.

Yudhoyono is currently on a week-long tour of Brunei, Cambodia and Myanmar.

Despite trade of US$912 million between Indonesia and Brunei in 2005, Yudhoyono said Indonesia's exports to Brunei totaled a mere $25 million, while most of its imports from that country consisted of oil and gas.

"We need to take steps to balance the trade between the two countries," he said, adding that the 2005 trade volume was much larger than 2004's figure of $327 million.

Despite being a member of the Organization of Petroleum Exporting Countries, Indonesia has now become a net oil importer due to declining production amid a lack of investment.

The need for the government to provide incentives in the oil and gas sector was raised by an Indonesian working with a Brunei-based oil company during a meeting between the President and Indonesians living in Brunei. The migrant worker said that many skilled Indonesians were forced to go abroad to earn a living.

Yudhoyono said he could not blame such people for leaving Indonesia, especially in the immediate aftermath of the economic crisis in the late 1990s, which led to widespread bankruptcies and massive layoffs.

"In order to bring them back, we must strive to rebuild our economy and curtail poverty. Hopefully, there will be more jobs and opportunities for them in the future so that they will be able to return home," he said.

The President cited the future purchase of another three CN 235 aircraft by Brunei from PT Dirgantara Indonesia as an example of how the trade between the two countries could be balanced. He also referred to defense industry collaboration with PT Pindad and infrastructure projects involving the construction of turnpikes, power plants, gas pipelines and water processing facilities.

"Brunei is now undertaking major construction work at its Muara Besar Port, which will obviously require labor and construction materials. We have offered to help supply what is needed for the project so as to boost trade between our countries," he said.

There are around 36,000 Indonesian workers in Brunei, accounting for a little over 10 percent of that country's total population.