Indonesia Seeks More Brunei Investment
By Hadi DP Mahmud

Jakarta - Indonesian President Susilo Bambang Yudhoyono on Tuesday invited Brunei to invest more in the republic, particularly in special economic zones (SEZs) on Batam, Bintan and Karimun islands, as well as in labour-intensive infrastructure projects.

Singapore and Indonesia signed an Arrangement Agreement on Economy Cooperation on the three islands in 2006, where shipments between the islands will be tax-free to improve the economy in the region.

Indonesia Minister and State Secretary Hatta Rajasa said last month that President Yudhoyono will be appointing members of the Batam, Bintan and Karimun Free Trade Zone Board this month, following a delay in the confirmation of the three islands' status as a free trade zone.

According to the scheme, Batam will be transformed into shipyard, electronic, and mechatronic industrial development centres; Bintan into textile, footwear, and tourism industrial development centres; and Karimun into shipyard, metal, component, agricultural, and marine produce industrial development centers.

Located close to Singapore and endowed with a much cheaper labour workforce, several Singaporean companies have established factories in Batam.

Following a four-eyed meeting between His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam and his Indonesian counterpart on Tuesday, both countries agreed to enhance cooperation in the areas of culture, trade, defence and energy.

His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam also invited Indonesia to invest in the sultanate to benefit both countries, Presidential spokesman Dino Patti Djalal said.

"In the defence sector, the President and the Sultan said they were committed to enhancing defence cooperation through trade in military equipment. The president offered Indonesia's military products," Dino told the press following the bilateral meeting.

According to a joint statement, President Yudhoyono has requested His Majesty to consider more procurement of Indonesia's military products, such as the CN-235 aircraft and PT Pindad-produced cartridges.

The CN-235, a mediumrange twin-turbo-prop aircraft, is developed jointly between Spain and Indonesia as a regional airliner and military transport.

The No 5 Squadron of the Royal Brunei Air Force (TUDB) is already equipped with an Indonesian-manufactured version of the aircraft.

Brunei and Indonesia also discussed cooperation in the energy sector between Indonesian oil company Elnusa and Petroleum Brunei. Elnusa has been contracted by oil and gas exploration company Loon Brunei to conduct a 3D seismic survey this year for its exploration phase in Block L, Tutong.

In the joint statement, President Yudhoyono welcomed the conferment of the Honorary Pilot Wing and Brevet of the Indonesian Air Force's Special Air Forces Corps awards to His Majesty, who received the awards yesterday at the air force headquarters in Cilangkap, Depok.

On environmental matters, the two leaders committed to improving cooperation under the Heart of Borneo scheme, an initiative to save forested areas that stretch between Indonesia, Brunei and Malaysia on Borneo Island. -- Courtesy of The Brunei Times

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