Keen on Indonesia

The Strait Times, By Lynn Lee, Indonesia Correspondent

PM Lee (far left), who was in Jakarta for the inauguration of President Susilo Bambang Yudhoyono (left) and Vice-President Boediono on Tuesday morning, spoke highly of Indonesia's strong and steady economic growth which is tipped to hit at least 4.5 per cent this year. -- ST PHOTO: DESMOND FOO

JAKARTA - SINGAPOREAN investors are keen to put their money in Indonesia but Jakarta will first have to straighten out its investment conditions to benefit more from foreign dollars, said Prime Minister Lee Hsien Loong here on Tuesday.

'Indonesia has grown very steadily, much stronger than Singapore. But the investments have not been as high as they could have been, and therefore for the longer term, it is something which Indonesia has to think and worry about.

'And we hope they'll be able to work it out so our investors can come in and participate in the growth and help in the growth...so Indonesia can prosper,' he told the Singapore media in Jakarta.

PM Lee, who was in Jakarta for the inauguration of President Susilo Bambang Yudhoyono and Vice-President Boediono on Tuesday morning, spoke highly of Indonesia's strong and steady economic growth which is tipped to hit at least 4.5 per cent this year.

He also cited his 'good relationship' with Dr Yudhoyono, who is into his second term, and said Singapore is looking forward to working with Indonesia, directly and through forums like Asean and the Asia-Pacific Economic Cooperation (Apec) forum.

Mr Lee said security and defence cooperation, as well as economic relations would play an integral part in bilateral ties. Both countries are working towards the Asean Economic Community in which goods, capital and labour would flow freely through the region by 2015.

'We need the big economies to give it a push and to contribute with their own offers and measures,' he added.