The head of Indonesia's Capital Investment Coordinating Board, M Lutfi, said Saturday that the opportunity for new investors to gain a share in the country's motorcycle market was still wide open.
He made the statement after speaking on "Investment Climate and Economic Prospect of Indonesia" at the meeting of Indonesia-Korea Chambers of Commerce in Jakarta as quoted by Antara state news agency.
"I think investing in automotive industry will not be a choice because demand is just turning down," he said.
However the industry still has a good prospect in the country because demand will return in line with economic improvement, he said, adding therefore South Korea would not increase its investment in the sector.
"Investment opportunity however is still open in the motorcycle industry as its market growth could still reach between six and seven million units a year," he said.
The deputy general chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for Industrial, Technological, Marine Sectors, Rachmat Gobel, meanwhile said that Indonesia needed to strengthen its component industry.
The need to strengthen the industry also applies on electronic as well as automotive industries, he said.
Therefore the meeting between Kadin and the South Korean chamber of commerce was important with regard to increasing investment from that country.
According to data from the Capital Investment Coordinating Board, realization of South Korean investment in the country from 1990 to January 2009 reached US$4.87 billion.
Korean investment in the country's metal, machinery and electronic sectors reached $1.75 billion which is the highest among other sectors.
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