Mr Lee Yi Shyan at the Grand Opening of Fraser Residence Sudirman, Jakarta, Indonesia, 1 June 2011

OPENING ADDRESS BY MR LEE YI SHYAN, MINISTER OF STATE FOR TRADE & INDUSTRY AND NATIONAL DEVELOPMENT, SINGAPORE AT THE GRAND OPENING OF FRASER RESIDENCE SUDIRMAN, JAKARTA, INDONESIA ON WEDNESDAY, 1 JUNE 2011 AT 8PM (SINGAPORE TIME)

Mr Lim Ee Seng, Chief Executive Officer, Frasers Center point Ltd,

Mr Choe Peng Sum, Chief Executive Officer, Frasers Hospitality Pte Ltd,

Ambassador Ashok Kumar Mirpuri,

Distinguished Guests,

Ladies and Gentlemen,

Introduction

It is my pleasure to join you at the Grand Opening of Fraser Residence Sudirman Jakarta today.

Strong and Thriving Businesses Linkages

Singapore and Indonesia share strong and growing economic linkages. Last year, Indonesia was Singapore’s fifth largest trading partner with total bilateral trade amounting to S$67.9 billion, an increase of 16.1%.

Likewise, Singapore was Indonesia’s 3rd largest trading partner and top realized FDI contributor in 2010. Singapore companies invested US$5 billion in 530 projects in Indonesia in 2010.

As the largest economy in ASEAN, and a population of 235mil, Indonesia is an integral and significant part of the ASEAN market. In fact, it has performed very well in the past 5 years. Its GDP grew 4.5 per cent in 2009 and 6.1% in 2010 despite the financial crisis that took place in late 2008 and early 2009.

According to the Indonesia Investment Coordinating Board, BKPM, FDI into Indonesia grew by 52% y-on-y to US$ 16.2 billion. Indonesia has a resilient economy aided by a large domestic market and consumption.

Indonesia’s growing economy will demand billions of dollars worth of investments in infrastructure including power plants, water treatment facilities, highways to housing. Similarly, its young and growing population will man greater demands for consumer goods and services. An economic vibrant Indonesia is good for ASEAN and Singapore.

Singapore businesses are well-positioned to contribute to Indonesia’s growth because of our geographical proximity and strong economic partnerships we have built over the years.

In fact, there are average 244 flights between Singapore and Jakarta per week. There are 173 flights between Singapore and other Indonesian cities. This data shows how closely linked we are, and there are many people-to-people interaction between two countries.

Frasers

Singapore businesses have long been investing in Indonesia. Frasers is a great example of a Singapore company expanding its investments into the growing Indonesian economy. With plans to open up 3 more service apartments in the Jakarta vicinity, Frasers expresses its full confidence in the Indonesian economy. Like Frasers, Singapore businesses take a strategic and long term view of the Indonesian economy. There are many win-win opportunities we can think of in furthering strengthening our strategic partnerships.

Conclusion

In closing, let me extend my warmest congratulations to the management and staff of Frasers Hospitality on their first completed serviced apartment project in Jakarta. I also want to thank you and all our friends present, for contributing to a growing and strong partnership between Indonesia and Singapore. I believe we can do much more together in the future.

Thank you.