Approved FDI jumps by 113.2% in first half

Approved FDI jumps by 113.2% in first half

JAKARTA (JP): The Investment Coordinating Board (BKPM) said on
Wednesday that approved foreign direct investment (FDI) jumped by
113.2 percent to US$4.96 billion in the first half of this year
compared to the same period last year.

The board said in a statement, however, that the number of FDI
projects only increased by 1.2 percent to 666, compared to the
same period last year, which saw 658 projects.

The board added that approved domestic investments increased
to Rp 37.7 trillion (about $3.9 billion) during the first six
months of the year, or 146.9 percent compared to the same period
last year.

However, in terms of the number of projects, proposals from
local investors dropped 23.9 percent to 124 projects compared to
the same period last year.

"The significant increase in the value of projects indicates a
gradual recovery in investors' confidence in Indonesia's
investment climate," the board said.

Most investors have avoided Indonesia over the last two years,
particularly because of political instability, security problems
and the economic crisis.

The board, however, did not reveal any data on the realized
FDI figure.

Experts said that one of the top priorities of the new
government was to sign a new economic deal with the International
Monetary Fund.

As part of the efforts to enhance the role of the board in
stimulating investments in Indonesia, BKPM is shifting its role
as a mere regulatory body to that of a market driven servicing
agency.

Theo Thoemion was installed as the new chief of BKPM in June
after the post had been vacant for some time.

To achieve that aim, BKPM will resume its function in
facilitating import duty on incoming capital goods and raw
material, facilitating a value-added tax, facilitating income tax
and authorizing proposals for the utilization of expatriates in
foreign and local companies, it said.

The board will function as the coordinator and facilitator for
the promotion of national investment both in Indonesia and
abroad, and will disseminate information on new investment
opportunities through the utilization of information and
technology.

The board will also establish cooperation with the Investment
Advisory Council (IAC) and the Indonesian Investment and
Financial Society (IIFS).

The IAC, whose members include representatives from the
Indonesian Chamber of Commerce and Industry (Kadin), various
associations and foreign chambers of commerce, will give their
input to the board chief on items concerning the policies and
investment problems.

The society will provide a forum for local and foreign
companies, as well as banking and financial institutions to work
together, it said in the statement.(tnt)