Capital sees improved investment<\/p>\n
JAKARTA (JP): The Jakarta office of the Investment
\nCoordinating Board (BKPMD) observed an increasing trend of
\ninvestment since the end of last year, an official said on
\nWednesday.<\/p>\n
"The improved security condition in the capital has
\ncontributed to the upward trend in investment," head of BKPMD's
\nJakarta office, Albert Napitupulu, said.<\/p>\n
Data published by the office show that from Oct. 1999 to Feb.
\n2000, the city secured 26 investment schemes. Fifteen schemes
\nwere local investments worth Rp 21 billion (US$2.8 million) and
\nthe remaining 11 were foreign investments from South Korea, Japan
\nand Singapore, together worth $3.5 million.<\/p>\n
Meanwhile, the investment figure recorded from Jan. 1999 to
\nSept. 1999 showed a total of $668,000 of foreign investment
\nexecuted. No local investments were made.<\/p>\n
The four-month cumulative investment was calculated since the
\nduet of President Abdurrahman Wahid and Vice President Megawati
\nSoekarnoputri took office last October.<\/p>\n
Napitupulu said the investment schemes, which included garment
\nindustries, tourism, telecommunication services and trading
\nsectors, would absorb some 2,100 of the local work force, with 44
\nforeign staff.<\/p>\n
The official said President Abdurrahman's overseas trips had
\nhelped improve the country's tarnished image and restored
\ninternational confidence to the Indonesian government.<\/p>\n
"Gus Dur has likely succeeded in persuading foreign firms to
\nreinvest their money in Indonesia," he said, referring to the
\nPresident by his popular name.<\/p>\n
Along with the security improvement in the capital, Napitupulu
\nsaid the administration would focus on developing cooperatives
\nand small and medium-scale companies in an effort to revive the
\ncity's business sector.<\/p>\n
"We'll continue helping the cooperatives and small and medium-
\nscale companies with their preparation for the implementation of
\nregional autonomy in April," he said.<\/p>\n
An official at the office's licensing division, A. Nawas, said
\nin an attempt to lure more investors here, the office had urged
\nforeign investors to establish business ties with local small and
\nmedium-scale companies.<\/p>\n
By doing so, he said, local businessmen could take part in the
\neconomic development. "Yet, the involvement of locals is only on
\nthe production side, while they still completely rely on their
\nforeign counterparts to market the goods."<\/p>\n
"The problem with local businessmen is that they do not eye
\npotential markets in other countries, so they depend on orders
\nmade by foreign investors who will also market the products," he
\nsaid.<\/p>\n
Nawas said his office would engage in a trade mission to
\nvarious countries, such as Japan, South Korea, the United Arab
\nEmirates and South Africa to display local products.<\/p>\n
"Coordination with exhibition organizing firm Jakprom, the
\nIndonesian Chamber of Commerce and Industry and the National
\nInvestment Coordinating Board is needed to select small and
\nmedium-scale companies qualified to join in the mission," he
\nsaid.<\/p>\n
Banks, including Bank BNI 46, Bank Muamalat and Bank DKI, are
\nalready appointed to enable business growth by providing low
\ninterest loans.<\/p>\n
Nawas said local companies were eager to join the program but
\nmost of them had difficulty providing collateral to obtain the
\nloans. (06)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/capital-sees-improved-investment-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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