Foreign investment has yet to recover
Foreign investment has yet to recover
JAKARTA (JP): Despite an increasing number of foreign
investment projects, the capital may see a decline in investment
value this year, an official said on Thursday.
Chairman of the Jakarta office of the Regional Investment
Coordinating Board (BKPMD) Albert Napitupulu told The Jakarta
Post that sluggish foreign investment might be connected to
foreign investors' careful stance in observing the political and
security conditions in the country and the capital as well.
"The prevailing unstable political and security conditions in
the country still affects foreign investment in the capital," he
said.
"It's likely that they (foreign investors) are still adopting
a wait-and-see approach in doing business here," he added.
Napitupulu said his office records showed that Japan,
Singapore, Hong Kong, the Netherlands, Great Britain and the
United States were among the top 10 countries in terms of
investment value here.
Office data also reveals that as of May 2000, the capital had
secured 186 foreign investment projects worth some US$131
million, while last year's overall figure showed a total of 429
projects secured with $777 million in value.
Napitupulu said all investment schemes, which were secured
until May this year, included projects in the garment industry,
tourism, telecommunications services and trading sectors.
"The figures reflect foreign investors' eagerness to take part
in local business sectors. They are just waiting for the right
time and avoiding security and political instabilities from
jeopardizing their investment," Napitupulu said.
He said his office was expecting a total of $316.5 million in
foreign investment value by the end of this year.
"While next year, we hope to secure a total foreign investment
value of $362.4 million," he added.
The figures are in sharp contrast to those of 1996, which saw
294 foreign investment projects totaling $3.75 billion.
Napitupulu said his office would prioritize the development of
business sectors which would help accelerate the establishment of
Jakarta as a service city, such as in trade, services, tourism
and selected industries.
Asked what he meant by selected industries, he said they were
those that would not pollute the environment nor require a large
area, and are high tech and export oriented.
He said his office also targeted to boost the development of
seven business locations in the capital which are economically
strategic, such as the Kuningan golden triangle and Kemayoran
fairgrounds as international business locations; Sunda Kelapa and
Kepulauan Seribu (Thousand Islands) marine resort for tourism;
and the Sudirman central business district as well as Pulogadung-
Cakung industrial-bonded zone for selected high tech industries.
The administration, he said, would make efforts to lure
foreign businessmen by providing simpler investment application
procedures through a one-stop-service program, especially for the
issuance of foreign investment approvals.
"They can come to our office directly or to our representative
offices abroad," he said.
Napitupulu said the one-stop-service program was expected to
help increase the number of foreigners investing in the years to
come.
"The program is also in line with the implementation of
regional autonomy, which aims at creating a conducive business
environment for both foreign and local investors," he said. (06)