Indonesia Plans Free Trade Port

Press, Volume CII, Issue 30259, 11 October 1963, Page 15

Indonesia Plans Free Trade Port

(NZ..P .A.-Heuter—Copyright) DJAKARTA, October 10. President Soekarno, in his latest confrontation move against Malaysia, today decided to open a free port and three trade zones in Indonesia spread out in an area facing the new federation.

The Indonesian Distribution Minister, Dr. Johannes Leimena, announced this after President Soekarno met with his top economic, political and military advisers.

Dr. Leimena said a free port would be set up at Sabang. a tiny island off the northern tip of Sumatra. The free trade zones would be set up at the North Sumatra port of Belawan on the Straits of Malacca, at Tandjung Prick in West Java and at Makassar in the South Celebes

Dr. Leimena said that if necessary other free ports would be opened. He said President Soekarno's decision would be carried out step by step, with the setting up first

of bonded warehouses in the tree trade areas.

Observers said the proposed free port and trade zones were designed to cut into the rich entrepot trade of Singapore and Penang. In the free port and trade zones, imported goods can be brought in, traded and sold without payment of customs duties. Indonesia cut off trade relations with Singapore and Malaya, her traditional markets. soon after the formation of Malaysia, which the Indonesians oppose. The Indonesian Foreign Ministry spokesman today declined to comment on London press reports that Indonesia would take over all British firms in the island republic except the Shell Oil Company The spokesman said: “No comment We deal only with hard facts.”