Capital sees improved investment

Capital sees improved investment

JAKARTA (JP): The Jakarta office of the Investment
Coordinating Board (BKPMD) observed an increasing trend of
investment since the end of last year, an official said on
Wednesday.

"The improved security condition in the capital has
contributed to the upward trend in investment," head of BKPMD's
Jakarta office, Albert Napitupulu, said.

Data published by the office show that from Oct. 1999 to Feb.
2000, the city secured 26 investment schemes. Fifteen schemes
were local investments worth Rp 21 billion (US$2.8 million) and
the remaining 11 were foreign investments from South Korea, Japan
and Singapore, together worth $3.5 million.

Meanwhile, the investment figure recorded from Jan. 1999 to
Sept. 1999 showed a total of $668,000 of foreign investment
executed. No local investments were made.

The four-month cumulative investment was calculated since the
duet of President Abdurrahman Wahid and Vice President Megawati
Soekarnoputri took office last October.

Napitupulu said the investment schemes, which included garment
industries, tourism, telecommunication services and trading
sectors, would absorb some 2,100 of the local work force, with 44
foreign staff.

The official said President Abdurrahman's overseas trips had
helped improve the country's tarnished image and restored
international confidence to the Indonesian government.

"Gus Dur has likely succeeded in persuading foreign firms to
reinvest their money in Indonesia," he said, referring to the
President by his popular name.

Along with the security improvement in the capital, Napitupulu
said the administration would focus on developing cooperatives
and small and medium-scale companies in an effort to revive the
city's business sector.

"We'll continue helping the cooperatives and small and medium-
scale companies with their preparation for the implementation of
regional autonomy in April," he said.

An official at the office's licensing division, A. Nawas, said
in an attempt to lure more investors here, the office had urged
foreign investors to establish business ties with local small and
medium-scale companies.

By doing so, he said, local businessmen could take part in the
economic development. "Yet, the involvement of locals is only on
the production side, while they still completely rely on their
foreign counterparts to market the goods."

"The problem with local businessmen is that they do not eye
potential markets in other countries, so they depend on orders
made by foreign investors who will also market the products," he
said.

Nawas said his office would engage in a trade mission to
various countries, such as Japan, South Korea, the United Arab
Emirates and South Africa to display local products.

"Coordination with exhibition organizing firm Jakprom, the
Indonesian Chamber of Commerce and Industry and the National
Investment Coordinating Board is needed to select small and
medium-scale companies qualified to join in the mission," he
said.

Banks, including Bank BNI 46, Bank Muamalat and Bank DKI, are
already appointed to enable business growth by providing low
interest loans.

Nawas said local companies were eager to join the program but
most of them had difficulty providing collateral to obtain the
loans. (06)