S. Korean firms to invest in Aceh
Wednesday, April 5 2000 - 05:00 AM WIB
A consortium of South Korean companies plans to invest some US$14 million in the Sabang industrial estate on Weh island, Aceh despite the security in the troubled province, remains uncertain, Antara news agency reported on Tuesday.
Kim Heung Joo, the director of Samjoo Co.Ltd, one of the consortium members, said that the South Korean companies would use the money to build oil refinery facilities, shipping yard, petrochemical plant and in aviation.
"The consortium will cooperate with Korean Oil Company in running the business in Aceh," he told journalists following a meeting with Aceh Governor Syamsuddin Mahmud.
The governor supported the Korean companies' investment plan and a memorandum of understanding (MOU) agreement would be soon signed to speed up the realization of the plan, Republika also reported.
Syamsuddin said that the provincial government was considering the consortium's demand to include a security guarantee in the MOU agreement as well as to issue land-use rights of up to 30 years to the consortium.
He said that providing favorable land-use rights, which could be extended, to another 20 years was important to give much time to the consortium to develop their industries on the Sabang industrial site.
According to media reports, armed conflicted between the Indonesian army and the pro-independence group continues in several regencies of the troubled province, leading to closure of several industrial activities. But some parts of the province remain safe. (*)