Indonesian state-owned companies urged to expand to Philippines

Indonesian state-owned companies urged to expand to Philippines

Dahlan Iskan. (ANTARA/Yudhi Mahatma)

The Philippine economic growth is at its highest."
Jakarta (ANTARA News) - Indonesia`s state enterprises minister Dahlan Iskan has called on state-owned companies to expand to the Philippines to tap into that country`s growth reaching 7.8 percent in the first quarter this year.

"The Philippine economic growth is at its highest. So that country certainly will need more investment to maintain the growth. This is an opportunity for state-owned companies to expand there," he said at "fun talks" with the media at his office here on Friday.

Early on Friday morning Dahlan attended a "Breakfast Meeting" with a number of Philippine officials in Manila to discuss about investment between Indonesia and the Philippines.

The meeting was also attended by Philippine deputy minister for political affairs and minister of foreign affairs Evan P Garcia, minister of finance, Cesa V Purisima and minister of industries and trade, Gregory L Domingo.

Dahlan said before meeting with the Philippine officials he heard that the Philippine statistics bureau had just announced that the country`s economy had grown 7.8 percent.

"This is the highest in Asia, up from 6.7 percent recorded in the year before. It is also higher than that of Indonesia which was recorded at 6.2 percent in the first quarter of 2013," he said.

When meeting with Philippine President Benigno Aquino III Dahlan said he immediately congratulated him for the achievement.

At the meeting with the Philippine officials he immediately accepted the requests for Indonesian state-owned companies to develop their businesses in that country.

The Philippines is serious in its invitation to Indonesia to develop palm oil industry in Southern Philippines including oil palm plantations and palm oil factories using high technology.

The Philippines viewed that Indonesia has successfully developed palm oil industry and has even surpassed that of Malaysia.

"They are surprised by Indonesia`s experience and the technology that it has mastered to develop oil palms that could start bearing fruits at the age of 2.5 years," Dahlan said.

In view of that he said he called on PT Perkebunan Nusantara to (PTPN) immediately follow it up by expanding there.

"Later PTPN could set up a joint venture with a Philippine state-owned company," he said.

Besides palm industry, the Philippine has also expressed its interest in procuring CN 235, NC 212, CN 295 planes made by PT Dirgantara Indonesia.

That country is also interested to cooperate with Bank Syariah from Indonesia to develop shariah-based banks in that country, he said.

(Reporting by Royke Sinaga/H-YH/B003)