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Vaudine England

Premier Zhu Rongji met Jakarta's leading ethnic Chinese tycoons yesterday in private meetings and at a formal dinner as part of a state visit to Indonesia in which trade and investment have been under the spotlight.

After meeting parliamentary heads, Mr Zhu focused on the local ethnic Chinese and Indonesian business communities in events ranging from a photo session to a gala dinner.

'He told us that he had received a very warm welcome here in Jakarta and that he was very glad about it,' Nurdin Purnomo, head of the Hakka Peoples' Association of Indonesia, said after talks at the Shangri-La Hotel.

'He said he felt strongly the very good intentions of Indonesia to work closely with China.'

He was among about 100 Chinese community leaders who met the Premier at an afternoon meeting.

Many had met Mr Zhu previously.

In attendance were figures such as Prajogo Pangestu and Anthony Salim and members of the Riady family.

Several of the business people already have substantial investments in China, which they hope to expand.

'Yes, the intention from the Indonesian side is to do more business with China,' Mr Purnomo said.

Wednesday's agreement to reopen a branch of the Bank of China was discussed, but Mr Zhu said China's ability to assist Indonesia was limited.

'Mr Zhu expressed his view that China is ready to help and assist Indonesia in handling certain projects, such as a US$7 billion [HK$54 billion] railway project in Sumatra, but in terms of financial backing, China is probably not ready to help just yet,' Mr Purnomo said.

Several participants said China now appeared to have a concerted policy of opening up towards Indonesia. Now that Mr Zhu had come to Jakarta and held meetings with leading members of the Chinese business community, past distance was evaporating, they said.

'Yes, this has been a highly useful visit and meetings,' Sharif Sutardjo, head of the China Committee in the Indonesian Chamber of Commerce said. He said reopening a Bank of China branch in Jakarta within months was most significant.

'This has been a stumbling block since 1990 [when China-Indonesia ties were fully restored],' he said.

He said Indonesia's central bank only gave permission a week ago for the new branch, which had retained its licence since its closure in 1967.

'What we want is investment from China,' Mr Sharif said. 'Our exports are only a few natural resources like pulp and paper, rubber, oil and gas.

'But we import about 100 manufactured items from China.

'We need to have more exports ourselves, and manufacturing investments.'

Indonesia's eagerness to get closer to China was symbolised by the presence of Trade and Industry Minister Rini Soewandi and chief economics co-ordinating minister Dorodjatun Kuntjoro-Jakti at the evening ceremonies.

Mr Zhu's schedule included the obligatory trip to the Hero's Cemetery at Kalibata. Curiously, this is where the bodies of six generals slaughtered in an alleged communist and China-backed coup in 1965 were buried.

Before meeting the business community, Mr Zhu met the chairman of the Peoples' Consultative Assembly, Amien Rais, and Speaker of the House of Representatives Akbar Tandjung.

Mr Zhu becomes a tourist today, travelling to Jogjakarta and the nearby Borobudur temple, before flying to Bali for the weekend.



Premier tells ethnic leaders of rapidly improving ties and prospects for co-operation