Foreign investment grows four-fold between April-May
JAKARTA (JP): Total foreign investment commitments, which declined more than 80 percent in the March-April period to US$411.65 million, grew by more than four times to $1.78 billion in the 16 April-May 15 period.
The Investment Coordinating Board (BKPM) said in its latest monthly report yesterday that domestic approved investment commitments in the April-May period also increased to Rp 4.85 trillion ($2.25 billion) from Rp 3.08 trillion ($1.43 billion) in the previous monthly period.
The report explained that foreign investments approved by the government during the April-May period were committed for 37 new projects worth $697.51 million and for 26 expansion projects worth $1.12 billion.
In comparison, during the March-April period, the government approved 30 new projects worth $300.25 million and 14 expansion projects worth $111.40 million.
Yesterday's report also noted that the domestic investment commitments approved in the April-May period comprised 84 new projects valued at Rp 3.49 trillion and 43 expansion projects valued at Rp 1.35 trillion. In the previous period, the government approved 44 new projects worth Rp 2.27 trillion and 13 expansion projects worth Rp 809.36 billion.
Projects
The report showed that the largest foreign investment commitment approved in the April-May was made by PT Led Borneo Cement, which will invest $440.13 million for a cement plant in South Kalimantan.
The other new foreign projects include:
* A $59.5 million office building construction and management project owned by PT Batavia City Realty in Jakarta.
* A $38.87 million hotel project in Irian Jaya owned by PT Alatief Freeport Hotel Corp.
* A $20 million cottage resort project in Bali owned by PT Bali Permai International.
The foreign expansion projects include:
* A $738.97 million industrial paper plant in Riau owned by PT Indah Kiat Pulp and Paper.
* A $100 million viscose and sulfuric acid plant in West Java owned by PT South Pacific Viscose.
The new domestic investments include:
* A Rp 454.1 billion polyester filament and textile plant in West Java owned by PT Tresna Tara Sekawan.
* A Rp 496.62 billion ferrous and non-ferrous forging plant in West Java owned by PT Perkasa Indobaja.
* A Rp 258.5 billion domestic and international shipping company in Bali and to operate throughout Indonesia owned by PT Trans Indo Pacific.
* A Rp 229.52 billion machinery components plant in West Java owned by PT Perkasa Heavindo Engineering.
* A Rp 85.16 billion coconut oil plant in Jakarta owned by PT Humpus Graha Nabati.
The domestic expansion projects include:
* A Rp 276.7 billion industrial pulp plant in East Java owned by PT Kertas Basuki Rachmad.
* A Rp 204.5 billion building ceramic plant in West Java owned by PT Mulia Keramik Indah Jaya.
Cancellation
BKPM also announced yesterday that it had canceled two domestic investment projects, including a flour and macaroni plant in Jakarta, West Java and East Java owned by Bogasari Flour Mills Timber Industries and a cacao and hybrid plantation in Lampung owned by PT Taru Prakarti.
The report also specified that the licenses for three foreign projects have been canceled. They were an umbrella manufacturing plant in Jakarta owned by PT Ever Glory Umbrella, a razor manufacturing plant in West Java owned by PT Gillette Indonesia and an electronics components plant in West Java owned by PT Hyundai Bestronik. (icn)