Foreign investment up 16.7% in first semester: Minister
Foreign investment up 16.7% in first semester: Minister
JAKARTA (JP): The government said on Tuesday that foreign
direct investment approvals during this year's first semester
rose by 16.7 percent to US$2.1 billion from $1.8 billion during
the same period last year.
State Minister of Investment and State Enterprises Development
Rozy Munir said that until June 15, the number of approved
foreign investment projects rose to 589 from 483 during the same
period last year.
"So far, this year's investment value has increased by 16.7
percent, while the number of projects rose by 21.9 percent," Rozy
said during a hearing with the House of Representatives'
Commission V, which oversees trade and industrial affairs.
His office processes all investment applications outside the
oil and gas and the financial sectors.
Despite the 16.7 percent increase, investment approval has yet
to reached its pre-crisis level, which throughout 1997 amounted
to $33.8 billion.
However, the increase marks the first positive trend after
foreign investment plunged $10.6 billion in 1999 from $13.6
billion in 1998 and $33.8 billion in 1997.
For this year, the basic metal industry was the most
attractive to foreign investors, absorbing $700 million of the
total investment approvals during the January-June 15 period.
The textile and chemical industries received about $200
million, the food and trade sectors about $100 million, while the
property and construction sectors absorbed about $90 million and
$80 million respectively.
Investment from Japan ranked first with 42 projects totaling
$900 million, followed by Singapore with 96 projects worth $200
million, England with 28 projects worth $200 million, the United
States with 23 projects totaling $80 million and South Korea
covering 105 projects worth $70 million.
Last week, however, his office reported that foreign
investment approvals in May had dropped by 84 percent to $167.6
million from $1.084 billion in April.
Rozy attributed the drop to legal uncertainties and worsening
security conditions in some parts of Indonesia.
On domestic investment approvals, Rozy reported that
investment in the first semester rose by 6 percent to Rp 12.3
trillion (US$1.4 billion) from Rp 11.6 trillion during the same
period last year.
In terms of numbers, domestic investment approvals rose by 28
percent to 128 projects from 100 projects last year.
Of the approved projects, Rp 3.3 trillion are in the food
industry, Rp 2.1 trillion in the chemical industry, Rp 1.6
trillion in the textile and paper industry Rp 0.7 trillion the
service sector and Rp 0.4 trillion in the transportation sector.
(bkm)