Indonesia Not Yet Japan's Main Investment Destination
Wednesday, 30 August, 2006 | 15:06 WIB
TEMPO Interactive, Jakarta: Indonesia is not yet Japan's main destination as regards investment despite the fact that Japan is the largest investor in Indonesia.
Trade Minister Mari Elka Pangestu has stated that now the value of Japan's investment in Indonesia is not as large as the one before the economic crisis occurred.
“Japan prefers China, Vietnam and Thailand. Indonesia is stagnant,” Mari said yesterday (29/8).
The Japanese Ambassador to Indonesia, Ebihara, confirmed that there had been a decrease in the value of Japan's investment.
In 1997, the value of Japan's investment reached US$8 billion, while last year it only amounted to US$1.2 billion.
However, Japanese investors have evaluated that the chance of investment in Indonesia remains high.
“Compared to other Asian countries, Indonesia has a high potential in terms of population growth,” said Ebihara.
The Capital Investment Coordinating Body has stated that Japan's investment in Indonesia during January to June of this year has increased by 110 percent to US$653.4 million, compared to the same period last year.
The target of Japan's investment is the automotive industry sector with US$258.3 million.
Other sectors include the electronic, trade, printing, plastic and rubber sectors.