Malaysian investors from the Associated Chinese Chamber of Commerce and Industry of Malaysia are currently in Indonesia to explore business opportunities in the country, one of its main investment destinations in Asia.

Led by the chamber’s deputy chairman Tan Seng Leong, the delegation consists of representatives of around 30 Malaysian companies engaged in plantations, manufacturing and property, including the Lion Group, trading and manufacturing group Engtex Group Berhard, Sunsuria Holdings S/B and edible oil maker Federation Factory S/B. The four-day visit will conclude on Tuesday.

Tan said in Jakarta on Monday that his members wanted to get firsthand information from Indonesian businesses and the government about doing business in the country.

The Malaysian businessmen will also discuss issues pertaining to the Indonesian investment climate, such as infrastructure and labor conditions as well as the licensing process.

“We are confident about the investment potential in Indonesia, which is one of the countries with the most natural resources in the world,” he said during his visit to the Investment Coordinating Board (BKPM) office.

According to Tan, Indonesia’s cheap labor is one of the strong points encouraging Malaysian investors to invest in Indonesia.

Tan explained that Indonesia’s workers had a good track record in Malaysia, especially in the construction industry and plantation sector.

“In the housing sector, no workers can work better than Indonesian workers,” he said, adding that Indonesian workers on Malaysian plantations were no less competitive than other foreign workers.

Nick Gandolfo, the senior vice president of international business of HSBC Indonesia, which facilitates the visit, said that as the largest Southeast Asian economy, Indonesia would play a more important role in Asia after China and India, partly due to its huge market.

“We expect these investors will have a better understanding of Indonesia’s potentials, understanding the market and the risk of changes and regulatory environment,” he said, adding that such knowledge would assist them in making decisions on investment in Indonesia.

Meanwhile, BKPM investment supervision and implementation deputy Azhar Lubis said that the government expected Malaysian investors to invest in the processing industry.

“We expect their investments in especially the palm oil industry to make crude palm oil [CPO] into end products, such as edible oil, margarine, soap, oleochemical and bio-diesel,” he told The Jakarta Post in a text message.

Indonesia, currently the world’s largest palm oil producer, exported around 15 million tons of palm oil last year, or two-thirds of its total palm oil output of 21 million tons.

More added value processes conducted in the country, he said, would absorb many workers and strengthen the country’s industry as well as economy.

Last year, Malaysian investment reached US$472 million or the 8th largest foreign investors in the year. Total foreign investments reached $16.2 billion in 2010.

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