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Tue, 08 Jun 1999

JP/Cautious investors hold off on tourist projects

Cautious investors hold off on tourist projects

JAKARTA (JP): None of this year's government-approved foreign and domestic investment plans in tourism have been realized, a senior official has confirmed.

I Gede Ardika, the director general of tourism at the Ministry of Tourism, Art and Culture, said over the weekend that most of the investors chose to adopt a "wait-and-see" attitude because the situation remained too delicate for them to open up new business.

Although he did not provide details on total foreign investment in tourism approved between January and May, his office's data showed 23 foreign investment approvals, with total value of US$25.31 million, for January and February alone.

"Many investors still fear there will be fresh riots during and after the general election in the riot-torn country," Ardika said.

Analysts' fears of riots during the 16-day campaign, which ended on June 4, were unfounded as no major incidents were reported.

According to the ministry's data, 16 of the 23 foreign investment projects are for the construction of hotels.

Seven of the hotels worth $21.66 million will be built in Bali, two in Riau, and one respectively in North Sumatra, Jakarta, Central Sulawesi, North Sulawesi, Central Java, East Java and West Nusa Tenggara.

The North Sulawesi hotel is the largest among the approved projects, with total investment of about $10 million.

Remaining foreign investment approvals include three restaurants in Bali and Central Java worth $345,000, three marine tourism centers in North Sulawesi ($810,500) and a recreation site in Bali ($2.49 million).

The government also issued five domestic investment approvals worth Rp 127 million in the hotel industry in January and February.

They also involve construction of hotels, two of which are for the construction of two hotels in Jakarta, requiring total investment of Rp 39.98 million. The three other hotels will be built in North Sumatra, with total investment of Rp 22.90 million, in East Java (Rp 39.98 million) and West Nusa Tenggara (Rp 63.73 million). (cst)