Foreign investment in 7.5 months up more than 100%<\/p>\n
JAKARTA (JP): Foreign investments approved by the government
\nduring the first 7.5 months of this year have more than doubled
\nfrom last year's level of US$8.1 billion, State Minister for
\nInvestment Sanyoto Sastrowardoyo said yesterday.<\/p>\n
He told a two-day seminar on Indonesia-China trade and
\ninvestment relations that, from Jan. 1 to Aug. 20, foreign
\ninvestments reached $15.9 billion for 248 projects.<\/p>\n
\"We expect that the approved foreign investments will reach
\n$20 billion this year,\" he said.<\/p>\n
However, Sanyoto said that foreign investments approved by the
\ncountry could not be considered because of Government Regulation
\nNo. 20\/1994, dated May 19, which allows 100-percent ownership for
\nforeign investors with longer and easier terms of divestment.<\/p>\n
He said that most of this year's investments were approved
\nbefore the launching of the new regulations.<\/p>\n
Sanyoto added that he is still waiting for the results of the
\nregulations, popularly known as PP 20, which are intended to
\nboost foreign investment in the country.<\/p>\n
He also said that Indonesia had to be ready to provide enough
\ninfrastructure to support the realization of the huge investment.<\/p>\n
Chinese<\/p>\n
The minister announced yesterday that Chinese foreign direct
\ninvestment to Indonesia had increased rapidly in the last three
\nyears.<\/p>\n
He said approved Chinese investments in Indonesia reached $81
\nmillion for four projects in the first seven months of this year.
\nThis far surpassed the approval figures for 1992 and 1993, which
\nrecorded $41.5 million (with four projects) and $28.6 million
\n(with 15 projects) respectively.<\/p>\n
The cumulative Chinese investment value has now reached $151.1
\nmillion in 23 projects, ranking them 22nd among foreign countries
\ninvesting in Indonesia.<\/p>\n
On the other hand, he acknowledged that he had no records on
\nthe amount of Indonesian foreign investment in China.<\/p>\n
Zhao Chunhua, deputy director general at the Chinese ministry
\nof foreign trade and economic cooperation, denied yesterday that
\nthe amount of Indonesian foreign investment in China had reached
\n$100 million. However, he declined to reveal the exact amount.<\/p>\n
He admitted that there are suspicions that there have been
\nmany Indonesian businessmen investing their money in China.<\/p>\n
As a government officer, he said, he was glad if there was an
\nincrease of Indonesian foreign direct investment in his country.<\/p>\n
However, he added that, \"(as) a competent officer in this
\nmatter, I should say that we need to build a bilateral
\ncooperation which will benefit both countries.\"<\/p>\n
He added that the foreign investment was no reflection on the
\nsituation in Indonesia, it was simply an economic activity with
\nthe goal of making a profit.<\/p>\n
\"For us, the most important thing is that if Indonesians made
\na profit through their investments in China, they can bring it
\nhome with them, with the same understanding applying for the
\nChinese,\" he said.<\/p>\n
He also said that, currently, his government still holds to
\nits policy of inviting foreign investors to his country rather
\nthan encouraging local businessmen to invest abroad. (05)<\/p>",
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