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.