Foreign investment increases 14.8%<\/p>\n
JAKARTA (JP): The value of government approved foreign
\ninvestment proposals increased by 14.8 percent in the first 4.5
\nmonths of 1996 over the same period last year, while domestic
\ninvestment approvals more than doubled.<\/p>\n
The Investment Coordinating Board (BKPM) said in its May 1996
\nreport that foreign investment proposals approved between Jan. 1
\nand May 15, 1996 reached US$18.2 billion compared to $15.9
\nbillion in the same period last year.<\/p>\n
The number of foreign investment proposals rose by 77.2
\npercent from 267 to 473, said the report, which was discussed in
\nlast week's monthly cabinet meeting on the economy.<\/p>\n
Domestic investment jumped to Rp 58.6 trillion ($24.9 billion)
\nin the first 4.5 months of 1996, up from Rp 24 trillion in the
\nsame period in 1995. The number of domestic investment proposals
\nrose by only 13.6 percent from 337 to 383.<\/p>\n
The chemical industry was the most attractive sector to
\nforeign investors with total approved investment reaching $4
\nbillion. Infrastructure investment was the next most attractive,
\nparticularly electricity, gas and clean water, with approvals of
\n$3.5 billion. Investment in the paper industry reached $2.8
\nbillion.<\/p>\n
For domestic investment, Rp 12.1 trillion went to the paper
\nindustry, Rp 8.8 trillion to the chemical industry and Rp 7.5
\ntrillion to plantations.<\/p>\n
The BKPM report said that April was this year's best month for
\ninvestment approvals.<\/p>\n
Foreign investment<\/p>\n
Foreign investment proposals approved in April 1996 reached
\n$4.9 billion which is $900 million higher than the March figure.
\nApproved domestic investment proposals reached Rp 19.5 trillion
\nin April, Rp 5.6 trillion higher than in March.<\/p>\n
According to the report, the largest approved foreign
\ninvestment proposal came from PT Hemoko Selayar International, a
\ncompany originally from Kuwait. It will invest $1.5 billion in an
\noil refinery in South Sulawesi.<\/p>\n
PT International Nickel Indonesia, a Canadian-Indonesian joint
\nventure will invest $500 million in a nickel expansion project
\nalso in South Sulawesi.<\/p>\n
Another major investor is PT Sumatra Energy Company of Japan
\nwhich will invest $390 million in a power plant in North
\nSumatera.<\/p>\n
PT Indomobil Suzuki International, a Japanese-Indonesian joint
\nventure, will invest $356.9 million to expand its automobile
\nplant, to produce engines and components.<\/p>\n
The major domestic investors whose proposals were approved in
\nApril include PT Irian Andalan Kertas, which will establish a
\nfactory in Irian Jaya to manufacture uncoated paper. It will
\ninvest Rp 2.69 trillion. PT Cendrawasih Andalan Kertas will set
\nup a similar plant in Irian Jaya with a Rp 1.79 trillion
\ninvestment. And PT Prima Andalan Kertas will establish a Rp 1.79
\ntrillion factory in Riau to manufacture uncoated paper.<\/p>\n
In April the BKPM canceled licenses for seven foreign
\ninvestment projects worth $1,509 billion, including an oil
\nrefinery in Riau expected to cost $1.5 billion.<\/p>\n
The board also revoked the 18 licenses for domestic investment
\nproposals worth Rp 1.3 trillion.<\/p>\n
The government cancels investment licenses if sponsors fail to
\nstart projects within three years. (kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/foreign-investment-increases-148-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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