Royal visit seen as boost for RI investment

Andi Haswidi and Novia D. Rulistia , The Jakarta Post , Jakarta | Wed, 03/05/2008 2:15 AM

BUSINESS AFFAIRS: Prince Andrew shakes hands with the Minister of Trade Marie Elka Pangestu before a meeting in Jakarta on Tuesday.

Prince Andrew, the Duke of York, was in Jakarta on Tuesday as a special envoy for trade and investment, aiming to strengthen bilateral ties between the United Kingdom and Indonesia and look for new business opportunities.

The high-level visit, business players said, would help bridge the perception gap between existing foreign investors in the country and potential investors on Indonesia's investment climate.

"Existing investors, many of whom have been here for decades, are generally upbeat and positive about doing business in Indonesia despite challenges that exists," British Chamber chairman Simon Morris said during a luncheon with the Duke in Jakarta.

However, he said, potential new investors often had a different perception that could negatively affect their business decisions when it came to investing in Indonesia.

"I have no doubt that visits like this, by the most senior level of UK trade and investment, can only help to ensure that such perceptions are gradually overcome. It will also help to ensure that business and investment decisions can be more informed and fact-based," he said.

During the luncheon, the Duke said he was here as part of the Indonesia-UK strategic partnership agreement signed by President Susilo Bambang Yudhoyono and then prime minister Tony Blair in March 2006.

"I want to make it clear that Indonesia is an important trading partner for the UK and offers us considerable potential for further growth, and that is for both directions," he said.

The Duke said the UK also had a great deal of business expertise to be offered, particularly London as a global financial capital, with advanced financial and business consultancy services.

Regular high-level visits, he said, are crucial in building a mutual relationship between the two countries. He invited President Yudhoyono to visit London to raise Indonesia's profile and showcase the opportunities that exist here and in the UK

The Duke also met with the President and Trade Minister Mari Elka Pangestu, before heading to Papua to visit British Petroleum's Tangguh project until Wednesday.

Mari reported after the meeting that the total value of Indonesia's exports to the United Kingdom reached Rp 1.4 billion and that her office was projecting a 10 percent growth this year.

Bilateral trade reached $1.72 billion in the first 10 months of 2007, a 6.5 percent increase from $1.61 billion during the first 10 months of 2006. Total trade in 2006 reached $1.98 billion.

"Together with the ministry of maritime affairs and fisheries, we're cooperating with the UK government in establishing a fisheries trade corridor which will help us meet the standards of exports," the trade minister said.

The UK is the second largest investor here after Japan, with total investments of $4.6 billion, mainly in the oil, gas and mining sectors, where British Petroleum, Rio Tinto and Shell are all active. UK investors also have stakes in automotive manufacturer PT Astra International and several hotels.