Foreign investment plunges by 83.2 percent

JAKARTA (JP): Foreign investment commitments approved by the government during the March 16-April 15 period dropped by 83.2 percent to US$411.66 million from $2.46 billion in the Feb. 16- March 15 period.

The Investment Coordinating Board (BKPM) said in its latest monthly report that domestic investment commitments approved in the March-April period also fell. The drop, less sharp than for foreign investment, was 55.7 percent to Rp 3.08 trillion ($1.44 billion) from Rp 5.52 trillion in the previous month.

The report explained that the foreign investments approved in the March-April period were committed for 30 new projects worth $300.25 million and 14 expansion projects worth $111.40 million, while the domestic investments were planned for the establishment of 44 new projects valued at Rp 2.27 trillion and 13 expansion projects valued at Rp 809.36 billion.

In comparison, during the February-March period the board approved 18 new foreign projects worth $384.97 million, 21 foreign expansion projects worth $2.08 billion, 74 new domestic projects worth Rp 3.98 trillion and 31 domestic expansion projects valued at Rp 1.53 trillion.

Projects

The report showed that the largest foreign investment commitment was made by PT Abadi Djoyo Iron-Steel Corp., which will invest $70.59 million for an iron plant in South Sulawesi.

The other new foreign projects include:

. A $21.41 million integrated Arabica-coffee plantation and processing project owned by PT Genap Mupakat in Aceh, northern Sumatra.

. A $21 million lamp-manufacturing factory in East Java owned by PT GE Angkasa Lighting.

The foreign expansion projects include:

. A $38.52 million consumer and household-electronics plant owned by PT National Gobel in East Java.

. A $34 million electric component and isolator plant owned by PT Scheider Indonesia in East and West Java.

The new domestic investments include:

. A Rp 517.15 billion integrated oil palm plantation and crude palm oil (CPO) processing project owned by PT Varita Majutama in Irian Jaya.

. A Rp 249.96 billion real estate and golf course complex owned by PT Adhibaladika in East Java.

. A Rp 166.95 billion medium density fiberboard (MDF) plant owned by PT Megarimba Karyatama in Lampung, southern Sumatra.

. A Rp 58.82 billion integrated oil palm plantation and CPO processing project owned by PT Pembangunan Khatulistiwa Belian Jaya in West Kalimantan.

. A Rp 45.50 billion steel-casting plant owned by PT Citra Industri Logam Mesin Persada in West Java.

The domestic expansion projects include:

. A Rp 220 billion integrated shrimp hatchery and cold storage project owned by PT Suri Tani Pemuka in South Kalimantan.

. A Rp 200 billion cement-based industry and general mining contractor services owned by PT Trumik Beton in West Java, with operations covering Indonesia.

. A Rp 170 billion industrial paper plant owned by PT Papyrus Sakti in West Java.

Cancellation

The report also specified that the licenses for three domestic projects have been canceled. The licenses were originally committed for the establishment of a rattan furniture factory in Central Sulawesi, a hotel in Bali and an industrial estate in East Java.

BKPM said that during the first 3.5 months of this year, it cumulatively approved 95 new foreign projects, which reflected a 58.3 percent increase from the 60 projects during the same period of last year. However, in terms of value, the investments to be involved in the projects increased by just 0.1 percent to $3.118 billion from $3.114 billion.

During the Jan. 1-April 15 period, BKPM approved 229 new domestic investment projects worth Rp 17.84 trillion, by far higher than the 103 new projects valued at Rp 5.95 trillion approved in the same period of last year. (10)