Foreign investment drops, domestic rises

Foreign investment drops, domestic rises

JAKARTA (JP): Foreign investment projects approved by the government during the one month period between Dec. 16 and Jan. 15 dropped by 107 percent from the previous month-long period to US$916.4 million.

Mochtar Ollong of the Investment Coordinating Board (BKPM) announced yesterday that domestic investment, however, recorded a 29 percent increase to Rp 3.7 trillion ($1.7 billion), which was committed for 82 new and 24 expansion projects.

In the December-January period, BKPM also revoked the licenses for one foreign investment project and nine domestic projects, most of which planned to manufacture textiles.

An official at BKPM said that the licenses were revoked because their sponsors had failed to start constructing the projects within three years of issuing the licenses.

Out of the 60 new foreign investment projects approved in the December-January period, 24 will operate in the services sector and the remainder in the manufacturing industry.

The foreign investment projects include PT Serpong Elektrika, which will set up a power plant in West Java with an investment of $369 million, PT A Latief P & O Port Development, which will establish a special port for copper miner PT Freeport Indonesia in Irian Jaya with $100 million, and PT Bakrie Diafoil, which will set up a $36.4 million polyester film plant.

The largest domestic investment projects include two cement factories to be set up by PT Gloria Raha Surya Semen Industry Corporation in Central Java with an investment of Rp 625 billion ($284 million) and by PT Makmur Jaya Utama in East Java with Rp 367.5 billion, and a wood-based factory by PT Darma Permai in South Sumatra with Rp 256.3 billion. (rid)