• CSIS, ST Telemedia and Network Indonesia Organise a Seminar to Promote Indonesia’s Business and Investment Climate 

Singapore, 15 March 2006

1. Indonesia’s Centre for Strategic and International Studies (CSIS), together with Singapore Technologies Telemedia (ST Telemedia) and Network Indonesia, is organising a business seminar on the ‘Strategic Impact of Foreign Investment in Indonesia’ on 16 March 2006 in Jakarta, Indonesia.

2. The Seminar, which will be opened by H.E. Jusuf Kalla, Vice President of the Republic of Indonesia, seeks to update investors and the business community on Indonesia’s business and investment climate, and to provide a platform to discuss and promote Indonesia-Singapore economic cooperation. The seminar will be attended by about 120 business leaders, policymakers and dignitaries from Indonesia and Singapore.

3. Said Dr. Hadi Soesastro, Executive Director of CSIS: "This Seminar is important as it reinforces Singapore’s important role in Indonesia’s economic development. The economics of Indonesia and Singapore are highly complementary and both can benefit greatly from the deepening of the relationship. This high interdependency requires support from the broadest range of stakeholders in both countries. This Seminar will make a valuable contribution to this aim."

4. Said Mr Lee Theng Kiat, President & CEO of ST Telemedia: "The competition to attract foreign investment is intense and countries, both developed and developing, are fighting very hard for that investment dollar. It is, therefore, crucial for Indonesia, at this critical juncture, to continue with its efforts to shore up investor confidence. As a strategic investor in Indonesia, ST Telemedia is delighted to be the co-organiser of this Seminar which brings together the country’s key policy and decision makers to share their thoughts on initiatives and policies that could promote even greater partnership between Indonesia and Singapore businesses. We hope that through organising this Seminar, ST Telemedia is able to signal to the rest of the world, our confidence in the country’s ongoing economic growth and stability."

5. Said Mr Lee Yi Shyan, Chief Executive Officer of IE Singapore: "Singapore companies are long-term investors in Indonesia. Our firms, both large and small, are confident of the country’s growth potential. This contributed to our ranking as Indonesia’s largest foreign investor in 2005. In fact, we have consistently been among the top foreign investors in Indonesia, and were ranked fourth in 2003 and 2004. With an improving operating environment and rising consumption in Indonesia, our firms can identify more trading and investment opportunities in wide-ranging sectors."

6. "Since its formation in 2003, Network Indonesia has organised and supported more than 40 events with the key objective of facilitating Singapore companies' interest in Indonesia. These events consistently attracted overwhelming interest and participation from our companies. IE Singapore, together with Network Indonesia, will be assisting our companies to explore opportunities in partnership with Indonesian businesses," Mr Lee added.

About the Seminar

7. Participants of the Seminar will attend a welcome dinner on 15 March 2006, at which Dr Boediono, Indonesia’s Coordinating Minister for the Economy, will deliver a keynote address. On 16 March 2006, H.E. Jusuf Kalla, Vice President of the Republic of Indonesia, will deliver the keynote address, followed by two panel discussions. The first, titled "Moving Forward", will be fielded by the following: Mr Lim Hng Kiang, Minister for Trade and Industry, Singapore; Dr Mari E Pangestu, Minister of Trade, Indonesia; Associate Professor Simon Tay, Chairman, Singapore Institute of International Affairs; and Dr Djisman Simandjuntak, Chairman, CSIS Foundation.

8. The second panel discussion, titled "Towards Mutual Benefits in Indonesia-Singapore Business Relations", will be fielded by the following: Dr Chatib Basri, Special Advisor to the Minister of Finance; Mr Sandiaga Uno, Chairman, Committee on Market Information Development, Indonesia Chamber of Commerce and Industry; and Mr Kankipati Rajan Raju, Managing Director & Head, South & South East Asia, DBS Bank.

Singapore-Indonesia Bilateral Economic Ties

9. According to data released by the Investment Coordinating Board of Indonesia (BKPM), Singapore was the largest investor in Indonesia in 2005, with investments amounting to S$ 6.3 billion (US$ 3.9 billion) in 2005. This contributed to approximately one-third of Indonesia’s total FDI inflows during 2005, and was a five-fold increase from the S$ 1 billion (US$ 617 million) recorded in 2004.

10. In 2005, Indonesia was ranked Singapore’s fifth largest trading partner with total trade valued at S$ 54.2 billion, an increase of 11.5% from S$ 48.6 billion in the previous year. Main exports to Indonesia included refined petroleum products and telecommunications equipment, while main imports included electronic products and refined petroleum products.