Kazakhstan invites Indonesian companies to invest
Fri, April 13 2012 17:04 | 1456 Views
Jakarta (ANTARA News) - Kazakhstan has created an opportunity for Indonesian companies to invest in its country, chief economic minister Hatta Rajasa said here on Friday.
"Following our discussion on trade and investment, Kazakhstan provided a wide opportunity for Indonesian companies to invest in that country, such as Pertamina to explore oil fields in Kazakhstan, where oil production now reaches 1.6 million barrels and next year up will increase to two million barrels a day," he said.
Hatta made his statement after meeting with visiting President Nursultan Nazarbayev of Kazakhstan at an Indonesia-Kazakhstan economic cooperation exhibition, in the company of energy and mineral resource minister Jero Wacik and industry minister MS Hidayat.
"We have also offered to them to invest in Indonesia, such as in downstream industries such as palm oil and cooperation in the field of cotton and wheat production, which had each been welcomed by President Nazarbayev," he said.
Hatta added that President Nazarbayev hoped the visit of the Indonesian coordinating minister for economic affairs, along with others to Kazakhstan in May, would lead to moving ahead on such investments.
"President Nazarbayev said he did not want to only sign a memorandum of understanding, but to directly realize cooperation in the field of tire production and joint assembling of N219 aircraft by PT Dirgantara Indonesia and Kazakhstan engineers," he said.
Other possible cooperation is for PT Indofood to invest in Kazakhstan, where the country produces wheat with 25 percent protein content and offers a market of 14 million people.
"So, we have proposed establishing a joint commission during the talks now. At present, we only have a business group, which is a forum of businessmen. The aim is to make the ministries focus on their respective working groups with regard to realizing potential cooperation," he said.
Hatta admitted that trade between the two countries was still small, recorded at about US$35 million.
"There are three issues that must be dealt with, namely transportation between the two countries, investment protection and prevention of double taxation. These are what we are going to discuss further," he said.
According to the trade ministry, trade between the two countries in 2011 was valued at US$33,15 million, down 9.4 percent from US$36.6 million in 2010.
Besides discussing economic issues, President Nursultan Nazarbayev is also scheduled to open an embassy in Jakarta.
This is the second visit by President Nazarbayev to Indonesia, who has led Kazakhstan since 1990. His first visit took place in 1995.(*)
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