Investment may drop 50% this year: BKPM<\/p>\n
JAKARTA (JP): The Investment Coordinating Board (BKPM)
\npredicted on Tuesday that both foreign and domestic investment in
\nthe country would fall by 50 percent this year and would remain
\nflat next year.<\/p>\n
The board's deputy chairman, Sugihono Kadarisman, said his
\noffice had approved 743 foreign direct investment projects worth
\nUS$12.63 billion and 248 domestic investment projects worth Rp
\n55.06 trillion ($6.1 billion) as of the end of September this
\nyear.<\/p>\n
As comparison, foreign investment approvals reached $33.8
\nbillion in 1997, $29.9 billion in 1996 and $39.9 billion in 1995,
\nwhile domestic investment approvals stood at Rp 119.87 trillion
\nin 1997, Rp 100.7 trillion in 1996 and Rp 69.9 trillion in 1995.<\/p>\n
\"I think this year is the worst of Indonesia's political and
\neconomic situation, and next year our position should start to
\nimprove,\" he said.<\/p>\n
\"Next year, I guess there will be a slight rise in the value
\nof investment. At the very least, the value will equal that of
\nthis year's.\"<\/p>\n
BKPM, however, does not license nor record investment in the
\noil and gas sector. The licensing of investment projects in this
\nsector is done by the Ministry of Mines and Energy.<\/p>\n
Sugihono noted that despite the fall in the value of foreign
\ninvestment, their numbers could increase this year, indicating
\nstrong interest among foreign investors in investing in the
\ncountry.<\/p>\n
As of the end of last month, foreign investment totaled 743
\nprojects, compared with 790 projects approved for the whole of
\n1997.<\/p>\n
However, the majority of foreign investment projects approved
\nthis year, about 429 projects worth $7.4 billion, were all
\ndomestic market-oriented.<\/p>\n
Only 314 foreign investment projects worth $5.23 billion were
\nexport-oriented projects, Sugihono said, compared to the 402
\nexport-orientated foreign investment projects approved last year
\nworth $11.47 billion.<\/p>\n
Some of the foreign investment projects approved this year
\nwere for work in food crops, plantations, live stock, fishery and
\nmining. These were part of the primary sector, he said.<\/p>\n
Other projects were in the manufacturing sector, including in
\nfood, textile, wood, paper, chemical, non-metallic minerals,
\nbasic metals, metal goods.<\/p>\n
Sugihono added that a number of firms had also entered the
\nservice sector. (29)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/investment-may-drop-50-this-year-bkpm-1447893297",
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