RI offers 15 sectors for S Korea investment

Jakarta (Antara News) - Indonesia offered 15 sectors for investment to around 70 South Korean businessmen attending the 13th meeting of the Indonesia-South Korea Joint Committee for Economic Cooperation here on Monday.

"Eleven of the sectors have already been filled by Korean businessmen," the head of the Capital Investment Coordinating Board, M Lutfi, said.

He said the government would give a tax allowance namely a tax cut by up to 30 percent for six years to investors in the 15 sectors.

He said the 15 sectors are flavor industry, textile and garment industry, pulp and hardboard industry, chemical indusry, other chemical industries, rubber and rubber produts industry, porcelain industry, iron and steel and non-ferrous metal indusries, machinery and equipment industry, electric motor including generator and transformer indusry, electronic, Information and Communication Technology industries, land transportation industry, ship building industry and repair industry.

On the occasion Lutfi also promoted special economic areas Batam and Bintan that provide special tax regulations for export-oriented indusries.

"Imports of raw materials and capital goods to the areas will be given tariff concession while exports are exempted from export duty," he said.

Lutfi said Indonesia was seeking to develop manufacturing industries to create added value and employment. "We can no longer promote the sale of raw materials or half-finished products," he said.

Early next year his office in cooperation with the ministry of industry, the ministry of trade, the National Agency of Assessment and Application of Technology, and the National Development Planning Board would map out top industries for promotion to foreign investors.

One of the industries to be promoted are the petrochemical industries and its derivative industries. "With oil and gas production reaching 1.6 million barrels a day we need to have a good petrochemical industry. Now we only have one aromatic chemistry industry and one complete petrochemical industry," he said.

He said most of the raw materials of the country`s petrochemical industry were reprocessed in Singapore. He hoped with attractive incentives, the added value could be built in the country.(*)
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