PRESS RELEASE:

Malaysia - Indonesia Business Council gets off to a good start

1. Following the formal signing ceremony for the establishment of the Malaysia-Indonesia Joint Business Council witnessed by Prime Minister Dato' Seri Dr. Mahathir Mohamad and President Megawati, at the Presidential Palace, Tampak Siring, Bali, the Business Council had its inaugural Joint Meeting, has adopted an action plan to further enhance bilateral business relations.
   
   
2. The Business Council has established six sub-committees on sectoral working groups covering the following areas:
   i. banking and finance
   ii. agriculture and plantations
   iii. information and communications technology
   iv. infrastructure / property / energy
   v. human resources / education / healthcare
   vi. trade / transportation / tourism
   
   These are the key sectors that the Business Council found to be the most appropriate to focus on to enhance bilateral business cooperation. Each sub-committee will identify a joint project to be undertaken within 6 months.
   
   
3. The Business Council has also decided that regular Business Forums should be organized to enable businessman from both countries to share experiences and exchange ideas. These Business Forums will provide a platform for continuous dialogue.
   
   
4. At the inaugural meeting, several problems and critical issues faced by Malaysian investors currently in Indonesia were discussed. The open discussion provided a mechanism for a greater understanding of these issues. The Business Council has agreed to accord priority to resolving these issues. The Secretariat will consolidate all issue and submit a Memorandum to the office of the Vice-President Indonesia and the Deputy Prime Minister Office Malaysia to seek a resolution, as the agreed channel provided for in the Memorandum of Understanding. A similar memorandum will also be submitted to the Joint Malaysia-Indonesia commission.
   
   
5. The Business Council has also called for a review of the existing Malaysia-Indonesia Investment Guarantee Agreement to accord stronger safeguards for investors and that recourse be vested in the Regional Centre for Arbitration.
   
   
6. Among the other objectives that were agreed upon at the meeting, the Business Council will provide an overall framework for identifying potential areas for cooperation between the business communities of Indonesia and Malaysia. The Business Council will also seek to encourage two-way trade and investment and the establishment of bilateral joint ventures.
   
   
7. The Asian Strategy & Leadership Institute (ASLI) has been appointed as the Malaysian secretariat for the Business Council.
   
   
8. Among the Malaysian members who attended the Inaugural Meeting of the Business Council are General Tan Sri Hashim Mohd Ali, Tan Sri Khalid Ibrahim, Tan Sri Dr Ahmad Tajuddin Ali, Tan Sri Nik Mohamed, Tan Sri Mohd Ali Hashim, Dr. Rozali Md. Ali, En Nazir Tun Razak, Tan Sri Lim Guan Teik, Tan Sri Chua Hock Chin, Dato' Lee Oi Hian, Dato' Dr Michael Yeoh and Dato' Kenneth Eswaran.
   
   
9. In conclusion, I am confident, that given the strong interest shown by both sides, the Malaysia-Indonesia Business Council will bring out bilateral relationship to new heights of joint endeavours.
   
   
10. Issued by: Tan Sri Dato' Seri (Dr) Ahmad Sarji Abdul Hamid
    Malaysia Co-Chair, Malaysia-Indonesia Business Council and Chairman, Permodalan Nasional Berhad