RI, US TO RESUME LOCOMOTIVE BUSINESS COOPERATION

Jakarta, Jan 26 (ANTARA) - Indonesia and the US are interested in resuming locomotive business cooperation developed since six years ago.

Coordinating Minister for Economic Affairs Hatta Rajasa said at his office here on Tuesday the cooperation would be developed through the country's PT Industri Kereta Api (INKA) and US General Electric (GE) that had already cooperated earlier in carriage production.

Hatta said the cooperation however had been discontinued due to tax policy and fuel problems.

"There will be talks again particularly between the US businessmen and the enterprise minister to push its conclusion," he said.

He said the talks were resumed after a meeting between him and US Ambassador to Indonesia Cameron Hume.

He said the meeting would be continued on Wednesday at a meeting with 63 businessmen from the US-ASEAN Business Council to discuss details of the conclusion of the joint venture business.

"This is a very strategic cooperation because the marketing of locomotives is not only in Indonesia but also in the region. Even the General Electric intends to make the business its basis for the Asian region," he said.

Hatta is scheduled to also meet with other businessmen from the US that have already set up businesses in Indonesia as well as new investors.

At present the US businessmen are discussing investment prospects in the country with the head of the Investment Coordinating Board (BKPM).

Cameron Hume admitted that Indonesia has a good investment potential but he declined mentioning the sectors being discussed.

"There are a lot of business and investment sectors we have been discussing and we hope the cooperation will continue to develop in the future," he said.