From: Antara NewsJakarta (ANTARA News) - Capital Investment Coordinating Board (BKPM) Chief Gita Wirjawan said Chinese and Hong Kong investments in Indonesia increased during the 2003-2009 period or after the signing of the ASEAN-China Free Trade Agreement (ACFTA).
Gita said Chinese entrepreneurs mainly invested their money in the industrial sector in several Indonesian provinces , namely West Java, Jakarta, Banten, Lampung and Central Kalimantan.
Investors from Hongkong who became interested in Indonesia after the signing of FTA sank funds in the real estate, industrial zone, office building, construction and mining sectors in West Java, Jakarta, Banten, Lampung, and Central Kalimantan.
According to BKPM data, realized Chinese investment in the 2003-2009 period amounted to an average of US$57.4 million per year or about 0.7 percent of the overall value of foreign investment in e period with the number of workers absorbed recorded at 2,996 per year.
The numbers were higher than in the 1999-2002 period when the anuual amount of realized Chinese investment avaraged only US$2.5 million and the number of absorbed workers was 188 per year.
Hongkong investment after ACFTA`s signing reached US$160 million per year and the average number of workers absorbed 5,682 per year.
Compared to other countries investing in Indonesia, the amount of realized Hong Kong investment ranked eighth and that of Chinese investment 16th.
On the other hand, realized Indonesian investment in China until mid-2009 amounted to US$2.7 million by a total of 511 companies.
Overall, Gita said, the problems Chinese investors were facing when they planned to invest in Indonesia mainly had to do with management conflicts, land-related issues, environmental issues and misuse of facilities.