Foreign investment surges by 16.5 times in one-month period

Foreign investment surges by 16.5 times in one-month period

JAKARTA (JP): Foreign investment commitments, which plumetted
to US$149.74 million in the January 16-February 15 period, surged
by more than 16 times to $2.46 billion in the February 16-March
15 period.

The Investment Coordinating Board (BKPM) said in its latest
monthly report yesterday that the surge in foreign investment was
caused mainly by the plans of PT Indah Kiat Pulp & Paper to
expand its plant in West Java with an additional investment of
$1.14 billion.

The board said total foreign investments approved by the
government in the February-March period included money for 18 new
projects valued at $384.97 million and 21 expansion projects
worth $2.08 billion.

In the January-February period, the board approved 19 new
projects valued at $96.04 million and 15 expansion projects
valued at $53.69 million.

Domestic investment commitments increased by 17.35 percent to
Rp 5.52 trillion ($2.57 billion) in the February-March period
from Rp 4.6 trillion ($2.19 billion) in the previous monthly
period.

Of the domestic investment projects approved by the government
in the February-March period, Rp 3.98 trillion ($1.89 billion)
was committed for 74 new projects and the remaining Rp 1.53
trillion ($714.87 million) for 31 expansion projects.

In the January-February period, BKPM approved the
establishment of 53 new projects worth Rp 2.92 trillion ($1.38
billion) and 28 expansion projects worth of Rp 1.73 trillion.

Projects

The new foreign-sponsored projects include:

. A $643 million plant to produce finger joints in South
Kalimantan to be operated by PT Duree Timber Indonesia.

. A $202 million purified terephathalic acid project in West
Java to be operated by PT Bakrie Kasei Corporation.

. A $80.37 million apartment and shopping center in Jakarta to
be operated by PT Amethyst Wahyu.

. A $34.15 million hotel in West Java to be operated by PT
Prodential Hotel Development.

The foreign expansion plans include:

. A $1.14 billion paper mill in West Java, operated by PT
Indah Kiat Pulp and Paper.

. A $87.7 million machinery components plant in West Java
operated by PT NSK Bearing Mfg. Indonesia.

. A $76.37 million integrated palm oil plantation and factory
in East Kalimantan operated by PT Comismar Wana Maja Agro.

. A $8.24 million ceramic house-ware plant in West Java
operated by PT Hankook Ceramic Indonesia.

BKPM also announced yesterday that it had canceled the
licenses for five domestic investment projects, including those
for two textile plants in East and Central Java, for one instant
noodle manufacturer in Jakarta, one sawmill and wood working
plant in East Kalimantan and one shellfish farm in North Sumatra.
(icn)