Investment in 2005 up by 96 Percent
Tuesday, 28 March, 2006 | 14:08 WIB
TEMPO Interactive, Jakarta: During 2005, investment in Indonesia rose by 96 percent to US$12.4 billion and this year the government is targeting a rise of 15.2 percent.
“This is about US$14 billion,” said Muhammad Lutfi, Head of the Capital Investment Coordinating Board (BKPM), on Monday (27/3).
According to Lutfi, the investment target is still far below the amount realized prior to the economic crisis, which then reached as high asUS$37 billion.
The figure is higher even than China’s US$32 billion.
Lutfi stated that investors preferred location where risks are low-risk and prices are cheap.
“The rise in risks will influence the investment climate in Indonesia,” he said.
Muhammad S. Hidayat, Head of the Indonesian Chamber of Commerce and Industry (Kadin), said that in order to attract foreign investment, the government must reposition BKPM at a department level.
Up to now, the board has been under the Department of Trade so it is limited by bureaucracy.