Malaysia The Biggest Investor In Indonesia In 2006

BERNAMA - 2007-03-01 14:32:20

KUALA LUMPUR, March 01, 2007 (Bernama) -- Malaysia has emerged as the biggest investor in Indonesia last year, beating Japan, South Korea and UK, with a total investment of US$2.2 billion (US$1=RM3.47).

Investments from Malaysia increased by 20 percent compared with Indonesia's investments in the country in 2005, Indonesia Embassy Charge d'Affaires, Abdurrahman Muhammad Fachir, said here Thursday.

He said Malaysian investments were in sectors ranging from agriculture to information technology, with agriculture being the biggest benefactor.

"There is still room for both of us (Malaysia and Indonesia) to explore. At the moment, we are working hard to make Indonesia an investment-friendly environment," he told reporters after the soft launch of the 9th Jakarta International Handicraft Trade Fair 2007 (Inacraft 2007) here today.

Last year, Malaysia was Indonesia's seventh largest trading partner after Japan, the European Union, the US, Singapore, China and South Korea, with total bilateral trade at US$9.72 billion.

Malaysia's exports to Indonesia were worth US$4.38 billion in 2006 while imports from Indonesia stood at US$5.34 billion.

For the last five years, total bilateral trade between Malaysia and Indonesia had recorded a positive trend of 21.8 percent.

Abdurrahman said Inacraft 2007, which would be held from Apr 18-22 in Jakarta, would pave the way for Malaysian and Indonesian handicraft manufacturers and entrepreneurs to seal more collaborations to boost the industry.

"Last year, Indonesia exported handicraft products worth US$500 million to the US, UK, Japan and Asian countries.

"We can use Malaysia as a platform to export our handicraft products to other countries.

"In conjunction with the Visit Malaysia 2007, we expect more tourists from Middle East, Australia and Europe to come here. This will also benefit our tourism industry as well," Abdurrahman said.

He said Felda Travel Sdn Bhd, a subsidiary of Felda Holdings Bhd, has been appointed as the Malaysian agent for the exhibition, which was expected to attract about 1,700 participants from 65 countries.

Meanwhile, Felda Travel's chief executive officer, Rusini Yusoff, said last year's Inacraft attracted 876 buyers and raked in retail sales worth 59 billion rupiah (100 rupiah = RM0.036) and trade contracts worth US$6 billion.

"The five-day trade fair will feature makers and distributors of gift items, housewares, home and garden decoration, toys, games, jewellery, batik, fashion garments and embroidery," she said.