Foreign investment approvals reach $30.1b

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)