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)