MALAYSIAN AND INDONESIAN BUSINESSMEN INVITED TO STEP UP INVESTMENTS

BALIKPAPAN (Bernama) - International Trade and
Industry Minister Mustapa Mohamed said serious efforts should be taken by both
Malaysian and Indonesian businessmen to step up investments in each other's
country.

He said there was excellent market potential for the abundant natural
resources existing in both countries if they are explored to the fullest.

"Todate, Malaysian investment in Indonesia amounted to about RM3 billion
(USD1=RM2.98) while Indonesian investment in Malaysia totalled about RM1
billion," he said in a live telecast over BTV, a private television station,
here Sunday.

Mustapa, is leading a 30-member delegation to Balikpapan, which includes
representatives from the Palm Oil Industry Cluster, Sabah Economic Development
and Investment Authority and Kota Kinabalu Industrial Park.

Mustapa said great potential existed for investment expansion especially
between East Kalimantan and Sabah as the population in both regions have
surpassed five million people.

He said Malaysian businessmen were invited to explore investment
opportunities in the coal and, oil and gas sectors in East Kalimantan while
Indonesian investors were welcomed to venture into downstream palm oil
industries.

East Kalimantan has about 40 million tonnes of coal reserves and is the
biggest producer of oil and gas in Indonesia.

Meanwhile, Mustapa was elated that Kaltim Air would fly to Tawau, Kota
Kinabalu and Balikpapan mid-August as it will augur well for investments and
tourist arrivals in South East Asia.

Earlier, during a meeting with Kaltim Post Group, Mustapa said Malaysia and
Indonesia constantly collaborated to counter steps taken by the United States
and Europe to discredit palm oil.