Call for investment promotion outside Java
JAKARTA (JP): Coordinating Minister for Production and Distribution Hartarto urged the Investment Coordinating Board (BKPM) yesterday to facilitate flows of foreign investments outside Java and Bali.
Hartarto said the subregional economic cooperation, which links some of the country's provinces to neighboring countries, should be used to attract foreign investors.
"Such cooperation schemes should be used to develop underdeveloped areas outside of Java and Bali," he told a coordinating meeting of the investment board.
He said most foreign investment was still focused on projects in Java and Bali.
Indonesia and other members of the Association of Southeast Asian Nations (ASEAN) have established economic growth triangles to speed up investment and trade in their neighboring provinces.
The Indonesia-Malaysia-Thailand triangle, includes Aceh, North and West Sumatra and Riau. Others are the Indonesia-Malaysia- Singapore triangle and the Brunei Darussalam-Indonesia-Malaysia- Philippines group.
The Australia-Indonesia Development Area incorporates Kalimantan, Maluku, Irian Jaya, Bali, East and West Nusa Tenggara, and East Timor.
He said BKPM must help local businesses in those areas to use the opportunities, by training them and cooperating with businesses from other areas.
Hartarto also urged the board to further improve the realization rate of the investment projects in the country.
According to the investment board, the realization rate of the foreign investment projects and local investment projects was 56 percent and 53 percent, respectively.
"To raise the number of projects realization, BKPM must continue working to improve the investment climate in the country," he said.
It must develop the industry, agriculture, mining, infrastructure, plantation and tourism sectors in the country, he said.
Data from the board shows that foreign investment approvals reached US$186 billion from between 1967 and July this year while those for local projects reached Rp 554 trillion.
The two-day meeting discussed ways to improve the investment realization through partnership programs. (das)