Call for investment promotion outside Java

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)