Indonesian President Susilo Bambang Yudhoyono expressed the hope here on Thursday that Russian businessmen could increase their investment in Indonesia to cement the relations between the two countries following improvements in the latter`s investment climate.
"Business opportunities in Indonesia are increasingly open while the country`s economy is continuing to grow. Indonesia also abounds in natural resources and market potential," he said when opening an Indonesia-Russia Business Cooperation Forum meeting.
Russian President Vladimir Putin also addressed the meeting which was organized by the two countries` chambers of comsmerce and industry. The meeting also heard speeches from the general chairman of the Indonesian Chamber of Commerce and Industry, Mohammad S Hidayat, and the deputy chairman of the Russian Chamber of Commerce and Industry Goergy G Petrov.
President Yudhoyono said fundamentally Indonesia`s economy was stronger, especially following the issuance of the Investment Law to create conducive atmosphere for investment.
"Economic relations between Indonesia and Russia have continued to develop as shown by the two countries` trade that has recorded positive growth. It is hoped the value of the trade can soon reach US$1 billion after standing at US$700 million in 2006," he said.
President Yudhoyono said although Russia`s investment in Indonensia was now still small compared to that of other countries there was now a commitment to increase it, especially following the signing of cooperation agreements in the oil, gas and mining sectors.
The two countries` leaders during the meeting also witnessed the signing of cooperation agreements among others between state-owned oil company Pertamina and Luk Oil, state-owned mining company PT Aneka Tambang and Russal and PT Bank Mandiri and Alfa Bank.
President Putin in his address said the trade between the two countries continued to increase in the past five years.
He admitted that the trade value was still small but the volume this year had soared 65 percent from last year.
"Although the intensity of cooperation between the two countries in the fields of economy and trade is still far below that in the field of politics we have already discussed a number of cooperation opportunities for an immediate concrete action," he said.
In line with that he hoped Indonesia would also increase its investment in Russia which was one of the ten largest economies in the world.
"In the past seven years Russia`s GNP increased by 7,9 percent and its foreign exchange reserve reach US$400 billion or the third largest in the world," he said.
In his address Mohammad S Hidayat meawhile said the business forum of the two countries` chambers of commerce was a bridge to strengthen the two countries` partnership.
"It is the business community that will actualy be the moving engine for the two counries` partnership. Indonesia has already prepared business divisions such as oil and gas, mining and energy, banking, insurance and tourism to accomodate investment opportunities from Russia," he said.
Georgy G Petrov meanwhile raised the importance of investment protection saying it was one of the basic reasons for Russian companies to come to the country.
"The value of cooperation contracts that have now been signed reached US$4 billion and it is not impossible it will reach US$7 to US$8 billion next year if the investment program is successful," he said.
http://www.antara.co.id/en/arc/2007/9/6/yudhoyono-hopes-russia-to-increase-investment-in-indonesia/
