Capital inflow to RI jumps

Capital inflow to RI jumps

SINGAPORE (Reuters): Indonesian officials said the country had seen a jump in foreign capital, following a looser investment policy that was put in place in late May, Singapore's Sunday Times newspaper reported.

Since then, US$3.2 billion worth of investment commitments had been approved, it reported Asril Noer, secretary-general of Indonesia's Ministry of Investment as saying.

The new inflows went into export-oriented sectors such as chemicals and agro-business.

The $3.2 billion was equivalent to a third of the $8.9 billion in foreign investments approved between January and June.

Under the new investment code, the Indonesian government led by President B.J. Habibie has de-centralized and accelerated approvals related to foreign capital income.

Following the revamp, only investments above $100 million have to be approved by the president.

Investments of between $1 million and $100 million can be approved by the Indonesia's Ministry of Investment.

Provincial governments can approve investments below $1 million.

Noer was reported as saying that Indonesia expected more investment to trickle in over the coming months, attributing his optimism to the shorter approval time of between 10 and 20 days as against 42 days previously.