Jakarta (ANTARA News/Asia Pulse) - The country's largest local energy company the Medco Group is building its own 43-floor tower in South Jakarta, with a total investment of Rp520 billion (US$57.7 million). The head office of the company group would occupy 16 floors with total floor space of 22,000 square meters, project manager Bambang Tri said. He said construction had been underway since June last year and would be completed by the end of this year.

The government has reiterated its commitment to attracting more foreign investment, affirming its guarantees for major infrastructure projects and longer-term land and property use titles for foreign investors. The policy affirmation comes as the House of Representatives wraps up deliberation on a new investment bill, which is expected to become law by the end of the month. "We will of course provide support for the main infrastructure development projects.

Almost five years ago, energy ministers from countries grouped in the Association of Southeast Asian Nations (ASEAN) reached an agreement to build a regional gas pipeline project, called Trans ASEAN Gas Pipeline (TAGP), to alleviate future energy shortages and bolster regional development.

The country's second largest phone company, PT Indosat, has set aside a minimum of US$1 billion in capital expenditure this year to bounce back from slower growth last year. "This year's net profit growth will be somewhat equal to income growth which is around 20 percent," Indosat finance director Wong Heang Tuck told reporters last week.

TEMPO Interactive, Jakarta: Entrepreneurs are once again protesting at the government's new proposals in discussing the Draft Bill on Taxes’ General Provisions and Guidelines. Entrepreneurs consider that the new proposal will burden entrepreneurs and may hamper the investment climate in the future.

Kuku, do you know if Carrefour owns the buildings or lease in Indonesia? I read recently about a majority shareholder (French national) wants to sell most of Carrefour's properties worldwide and lease them back to Carrefour. WalMart is doing the same thing for tax credit; apparently owning properties is not a beneficial as leasing.

In the US, the big three car makers, GM, Ford, Chrysler are in trouble, losing billion of dollars for the last few years. Chrysler is selling its European, Aston Martin, I believe to private equity firm. However, GM is finding China to be lucrative market now and GM cars selling like crazy in China. A Chinese car maker is trying to build a car mfg facility in Indonesia? interesting. Why do they pick Indonesia? Does the gov't offer huge tax break or other incentives?

the local car market is starting to stall ... I know that GM, Ford and Astra are finding things a little sticky in Indonesia

hard to know whether it's "real" investment or not. car industry worldwide is always throwing huge figures about to impress governments. one question is, how strong really is the local car market? frankly, it's looking soft to me.

For the past few months I have read article and article about how strong the automotive industry is looking .... My question is does anybody know if this investment is secured and are car manufacturers looking at Indonesia seriously, or is this the government talking things up in a desperate attempt to land some investment??

Carrefour, the largest hypermarket operator in the country, plans an additional investment of $207 million to open 10 new outlets in 10 provincial capitals in the country. The French retailer, which already has 29 outlets in eight other provincial cities, has secured the license from the government to open the new outlets, Antara reported on Wednesday (21/3/07).

The government, bankers and business leaders agreed in a meeting Thursday (22/3/07) to give priority to financing expansion of 10 major industrial sectors to boost exports, Antara reported. The sectors - textile, rubber, rubber goods, electronic, automotive component, forest product, crude palm oil, cacao and coffee processing industries - contribute 52% to the country's non oil/gas export earnings.

The government predicts the nation's automotive industry will boom this year and in 2008. In the first quarter of 2007, investment in the automotive sector has already reached $173 million, said Budi Dharmadi, Director General of Transport Equipment and Information Technology Industry, Antara reported on Wednesday (21/3/07). A number of the world's leading automotive principals have shown strong interest in establishing their production bases in Indonesia, Dharmadi said.

Palm oil producer Kuala Lumpur Kepong Bhd (KLK) plans to expand its plantation land bank by another 50,000 hectares to 250,000 hectares, preferably by investing in green field projects in Indonesia, Malaysia’s New Straits Times reported on Friday (23/3/07). The group currently owns 100,597 hectares in Indonesia, half of which has been planted.

A new investment bill will go to a plenary of the House of Representatives on Thursday (29/3/07) after being approved by a special committee. Irmadi Lubis, a member of the House special commission preparing the bill, said the legislation is needed to attract foreign investment to spur economic growth and create more job opportunities. "After China and other ASEAN member countries, Indonesia has to follow suit, giving access as wide as possible to foreign investors to... the country," he said.

The new investment law will be put to a plenary session of the House of Representatives on Thursday (29/3/07) after being approved by a special working committee. The long-awaited bill provides tax incentives for new investors and existing operations that want to expand. It is the first of a number of new pieces of legislation due to be passed this year, with amended tax laws expected to be approved by the House mid-year.

Jakarta (ANTARA News) - State-run Bank Rakyat Indonesia (BRI) will not abandon the micro, small and medium enterprises sector, although it has entered the infrastructure sector and provides corporate credits, a director has said.

Jakarta (ANTARA News) - The government is proposing a regulation to be included in the draft bill on investment which would allow foreign buinesses to own properties if they make direct investments in Indonesia. Foreign investors can own properties through possessions of a Land Title for Construction Purposes (HGB), a Land Title for Industrial Purposes (HGU) or a Land Title for Personal Use (HP).