Indonesia to set up special economic zone in Morotai: official

Want China Times, CNA 2014-02-20

A street in Morotai, Indonesia. (Photo/CNA)

The Indonesian government has decided to establish a special economic zone in Morotai, one of Indonesia's northernmost islands and the location of a Taiwan-Indonesia joint development project, Taiwan's representative to Indonesia said Wednesday.

"The decision to set up the zone is conducive to carrying out the joint development project," said Chang Liang-jen, representative of the Taipei Economic and Trade Office in Indonesia.

The special economic zone will come with various beneficial measures to attract investment in Morotai in such areas as fisheries and tourism, Chang told reporters in Taipei.

Taiwan and Indonesia signed a memorandum of understanding in 2012 covering the joint development of Morotai, the largest island of the resource-rich Maluku archipelago in eastern Indonesia.

The island, located 2,600 kilometers from Taiwan, has a population of some 50,000 and an area of about 2,400 square kilometers.

Chang is among a group of Taiwanese overseas envoys who returned to Taiwan to attend a four-day seminar organized by the ministries of foreign and economic affairs, as part of the country's preparations for entering negotiations on the proposed Trans-Pacific Partnership (TPP) and the Regional Comprehensive Economic Partnership (RCEP), two proposed trade blocs in the Asia-Pacific region.

He said the seminar, which began Feb.17, is an opportunity to share experiences with representatives posted in other countries and to brainstorm strategies to seek support aboard for Taiwan's bids.

Indonesia has a positive attitude on Taiwan's efforts to join regional economic integration, Chang said, adding that both sides have been discussing the possibility of signing a bilateral investment agreement to advance trade relations.

Also at the press event was Taiwan's representative to Australia, Katherine Chang.

"We will continue to seek Australia's support for our TPP and RCEP bids," she said.

The TPP negotiating countries are set to finish the first round of negotiations later this year, and Chang said that Taiwan is aiming to enter the second rounds of talks.

Meanwhile, the group of overseas representatives were scheduled to visit central and southern Taiwan later Wednesday and Thursday to learn more about the country's competitive industries and the development of free economic pilot zones. This will give them a better understanding of the country's trade liberalization efforts.

The government has repeatedly reiterated its desire to join the two trade blocs to avoid economic marginalization. It has set a goal to complete the preparations by July.

Taiwan's representatives to Singapore, Malaysia, the Philippines, Indonesia, Thailand, Brunei, Vietnam, Japan, South Korea, New Zealand, Australia, India, Peru, Chile, Canada and Mexico are attending the seminar.

Other participants include Taiwan's newly appointed representative to the United States, Shen Lyushun, and deputy representative to the US, Leo Lee.

The TPP currently is being negotiated by the US and 11 Pacific Rim nations — Japan, Australia, Peru, Malaysia, Vietnam, New Zealand, Chile, Singapore, Canada, Mexico and Brunei.

The RCEP is being negotiated by all 10 members of the Association of Southeast Asian Nations, along with China, India, Japan, South Korea, Australia and New Zealand.