Red carpet treatment for Indonesian tycoon

By Yoke Har Lee

The New Zealand Trade Development Board's is to roll out the red carpet for one of Indonesia's richest conglomerates, the Lippo Group.

James Riady, son of Lippo's founder Mochtar Riady, is deputy chairman. He will visit New Zealand next week under Trade NZ's special investment programme.

He made headlines last year when it was revealed he had made contributions to United States President Bill Clinton's re-election campaign and had enjoyed trips in the presidential limousine and visits to the White House and Oval Office.

Chris Gorton, chief manager for the programme, told the Business Herald that so far, four US companies had used the programme and were likely to invest in New Zealand in some way.

One was a Wall Street financial research company looking to use New Zealand's time zone to extend Wall Street business. The others were a medical biotech company, a wine company looking at setting up production here, and a diversified company involved in packaging and flowers among other interests.

Others in the pipeline for the programme included a venture capital company from Taiwan, a biotech fund from Taiwan and a Thai conglomerate.

Every visitor under Trade NZ's red carpet programme would have a New Zealand host, Mr Gorton said.

Mr Riady will have two hosts, one a former ambassador to Indonesia, Tim Grosser, and Errol Clark from Ernst & Young's Capital Corp.

Apart from meeting selected Auckland businessmen, Mr Riady is scheduled to meet Prime Minister Jenny Shipley and other ministers.

The Lippo group has a wide range of businesses spread over Asia and Australia. It is well-known in Asia as a financial, property and retailing conglomerate among others. The group has at least 10 associated companies listed on the Jakarta Stock Exchange. However, it was hit hard by the collapse of the rupiah, and the group's asset value shed $14 billion to $2.8 billion.

Mr Gorton said he aimed to put 50 companies through the programme by next February. "With such programmes, you don't expect a straight investment decision after a visit. But it looks like there will be a number this year, partly also because of the preparation work going on before hand."