Cambodia offering incentives to Indonesian investors

Jakarta (ANTARA News) - Cambodia wants to step up and develop its export and import trade with Indonesia and is offering incentives to Indonesian businessmen willing to invest in Cambodia, a Cambodian trade official said.

Cambodia wants to increase and develop its business cooperation with Indonesian businessmen, Son Koun Thor, president of the Chamber of Professional and Micro Enterprises of Cambodia (CPMEC), said when visiting the National Agency for Export Development (NAFED) here Monday.

He said Indonesian businessmen willing to invest in Cambodia would be given incentives such as tax relief and the tax exemption facilities given to Cambodia by certain other countries including China.

The tax exemption facilities from China and other countries had so far remained unused because Cambodia was still unable to make the goods according to the quality standards required by those countries. Son hoped Indonesia and Cambodia could set up a joint venture company capable of producing goods that would qualify for the tax exemptions offered by China and the other countries.

Son is Indonesia at the head of a 12-member business and trade delegation from Cambodia.

He said his country was also willing to develop cooperation in the fields of tourism, handicraft, agriculture and construction with Indonesia.

During its stay in Indonesia, the Cambodian delegation would meet with the management of state oil and gas company Pertamina and the Solo branch of the Indonesian Chamber of Commerce and Industry (Kadin).

Meanwhile, Lili Suliani, head of the Center for Development of Markets in the Asian, Australian and New Zealand Region, expressed hope Indonesian businessmen would take the Cambodian offer.

She said Indonesian businessmen needed to get a stronger foothold in Cambodia as Indonesian products had only slightly penetrated the Cambodian market.

According to data from the Central Bureau of Statistics (BPS), the value of Indonesian non-oil/non-gas exports to Cambodia reached US$103.648 million in 2006, an increase of 10.34 percent from 2005 when the figure was only US$93.94 million.

Meanwhile, Indonesia`s imports from Cambodia in 2006 totaled US$1.06 million or an increase of 44.05 percent compared to 2005 when the figure was US$732.600. (*)