Indonesia expects record year for foreign investment<\/p>\n
SINGAPORE (Reuter): Indonesia is heading for a record year for
\nforeign investment, with Japan leading the list of countries
\nputting money into new projects in the country, the State
\nMinister for Investment, Sanyoto Sastrowardoyo said.<\/p>\n
Sanyoto, speaking at an investment forum here, said that
\ndespite its current strength, foreign investment had yet to show
\nthe impact of further deregulation measures introduced by the
\nIndonesian government in May.<\/p>\n
The minister said the first six months of 1994 saw a total
\nforeign investment of US$9.5 billion in 171 non-oil and non-
\nfinancial projects approved, against a 1993 year's total of $8.14
\nbillion in 329 projects.<\/p>\n
Foreign investment worth $10.32 billion in 305 projects was
\napproved in all of 1992.<\/p>\n
"Looking at the performance in the first semester (six months)
\nof 1994, there is no doubt that by the end of this year,
\nIndonesia will have a new record on domestic and foreign
\ninvestment approvals," Sanyoto said.<\/p>\n
He said domestic investment of 32.401 trillion rupiah in 457
\nprojects had been approved in the first six months of 1994.<\/p>\n
That compares with 39.450 trillion rupiah in 548 projects in
\n1993 and 29.342 trillion rupiah in 436 projects in 1992.<\/p>\n
Cumulative<\/p>\n
"Cumulatively since 1967, up to June 30, 1994, we have
\napproved $79 billion of foreign investment in 2,882 projects plus
\n277.8 trillion rupiah or about $132.2 billion of domestic
\ninvestment in 8,657 projects," the minister said.<\/p>\n
Sanyoto said Japan had always been Indonesia's biggest backer,
\ninvesting $17.6 billion in 668 projects, but that the identity of
\nthe second-biggest investor had varied.<\/p>\n
Two months ago, Taiwan took the number-two spot. However, last
\nweek a large electric power project with Hong Kong backing
\nenabled the British colony to displace Taiwan.<\/p>\n
In May, Jakarta modified foreign investment rules to allow
\njoint-venture companies in which the Indonesian stake is as
\nlittle as five percent to invest in industries including
\ntelecommunications, shipping, airlines and mass media.<\/p>\n
Wholly foreign-owned companies, although restricted in their
\nbusiness, can get a license to operate for an initial 30 years.
\nThey have to sell part of their shares to Indonesian citizens
\nafter 15 years.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indonesia-expects-record-year-for-foreign-investment-1447893297",
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"sponsor": "Okusi Associates",
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