MALAYSIAN BUSINESSMEN URGED TO TAP OPPORTUNITIES IN OTHER PARTS OF INDONESIA

PETALING JAYA (Malaysia), July 8 (Bernama) -- Malaysian entreprenuers should
focus on establishing businesses in different parts of Indonesia and not be too
"Jakarta-centric".

KRA Group Chief Executive Officer (CEO) Karim Raslan said opportunities were
now opening up across the Indonesian archipelago and provincial centres like
Makassar, Balikpapan, Medan and Palembang, had become increasingly
important.

"I call them "daerah-to-daerah" or region-to-region linkages, which
decentralisation policies have facilitated," he said, during a talk on
Investment Outlook and Business Opportunities in Indonesia, at the Activate
Asia: Insight Indonesia Forum, here Thursday.

He added the development would benefit in particular Penang, Kuching and
Kota Kinabalu.

Indonesia's economy grew by a better than expected 4.5 per cent in 2009. It
is now expected to grow between 5.5 per cent to 6 per cent in 2010.

Earlier in his opening remarks, Indonesian Ambassador to Malaysia Professor
Dr Da'i Bachtiar said, moving into a new era, Indonesia is now undergoing
exciting political as well as economic reforms.

"Over the medium term, the move to democracy and civil society will have a
positive impact on business ethics and the investment climate, although there
may be rough periods along the way," he added.

Indonesia, he explained, now has a relatively open foreign investment regime
and is looking to it to boost the country's economy.

Virtually all sectors, except those of specific national interest to
Indonesia, allow foreign participation.

The government has also issued several new regulations to ease the entry of
foreign firms and capital into the country.

"Over the past few years, the government also made changes to simplify the
approval process," the Ambassador said.

He said that the Investment Coordinating Board is implementing a
one-stop-shop system (PTSP), to cut bureaucratic redtape, and allow investors to
process business licences faster.

The Activate Asia Forum, jointly organised by HSBC Bank Malaysia and the
Chinese Chamber of Commerce and Industry of Kuala Lumpur and Selangor, was aimed
at providing businesses with the insights and knowledge to tap the Indonesian
market.

The one-day forum also provided basic information on the foreign investment
environment in Indonesia and a brief overview of related rules and regulations.
-- BERNAMA