Foreign investment approvals reach $30.1b

JAKARTA (JP): State Minister of Investment Sanyoto Sastrowardoyo said yesterday that this year's foreign investment approvals have reached US$30.1 billion for 546 projects, up by 63.6 percent over the same period of last year.

Speaking after a meeting with President Soeharto, Sanyoto added that between Jan. 1 and Sept. 7 this year his office has given approval to 562 domestic investment projects worth Rp 44.1 trillion ($19.5 billion), an increase of 7.6 percent from the same period of last year.

"It seems that this year's trend of foreign investment exceeding domestic investment will continue. It has occurred only this year and has never happened in previous years," Sanyoto told journalists.

Last year, foreign direct investment approvals were still below the domestic investment record. Last year's foreign investment approvals reached $23.7 billion, increasing almost three times from the previous year's record of $8.1 billion, while last year's domestic investment increased to Rp 59.3 trillion from Rp 39.5 trillion in 1993.

Sanyoto said Japan is still the biggest foreign investor in Indonesia, with cumulative investments of $23.96 billion for 749 projects as of Sept. 7, followed by Britain with $19.9 billion for 166 projects, relegating Hong Kong to third place for the first time with $15.5 billion for 315 projects. The United States is fourth, with $11.4 billion; Singapore fifth, with $10.2 billion; and Taiwan sixth, with $8 billion.

All of the figures, Sanyoto said, exclude investments in the oil and gas, banking and leasing sectors, in which investment is licensed by other institutions.

Earlier this year, the government signed a $40 billion contract with Esso Natuna Inc., a subsidiary of Exxon Corporation of the United States, for the development of a gas liquefaction project in Natuna, Riau province.

Sanyoto said further yesterday that Indonesia needs a total direct investment of Rp 44.9 trillion per annum during the current sixth Five-Year Development Plan period, ending in March 1999, to support the country's goal of achieving an average annual economic growth rate of 7.1 percent during the period.

In his state address to the House or Representatives last month, President Soeharto revised upwards the investment target for the current five-year plan to Rp 815 trillion from the original target of Rp 660 trillion. The new investment target is considered necessary if the country is to achieve its revised annual growth target of 7.1 percent per annum, up from the original target of 6.2 percent. (rid)