Foreign investments decline sharply
JAKARTA (JP): Foreign investments approved by the government for the development of non-oil and non-financial businesses fell sharply in the period from June to July, dropping to US$139.56 million from $225.85 million in the May-June period.
However, in a monthly report released yesterday, the Investment Coordinating Board (BKPM) said that domestic investments surged to Rp 7.55 trillion ($3.48 billion) from Rp 3.05 trillion.
The report explained that foreign investments approved in the June-July period were slated for 12 new projects worth $44.94 million and for 18 expansion projects worth $94.61 million.
For comparison, during the May-June period the government approved 15 new projects worth $125.16 million and 17 expansion projects worth $100.68 million.
State Minister of Investment Sanyoto Sastrowardoyo made an announcement last month that the total foreign investment commitments approved by the government in the first seven months of this year had reached $14.7 billion. He said this years foreign investments were expected to reach $20 billion, as compared to $8 billion last year.
The report also noted that the domestic investments approved in the June-July period were committed for 102 new projects valued at Rp 5.82 trillion and 25 expansion projects valued at Rp 1.72 trillion. In the previous period, the government approved 56 new projects valued at Rp 1.95 trillion and 36 expansion projects valued at Rp 1.09 trillion.
Projects
The report showed that the largest foreign investment commitment approved in the June-July period was made by PT Eresindo Bintan, with a total investment of $24.3 million for a hotel and water resort project in Riau.
The other new foreign investment projects include:
* A $6.42 million soft drink plant in West Java committed by PT Ajinomoto Calpis Beverages Indonesia.
* A $5 million hotel and accommodation project in Riau committed by PT Riau Island Indah Resort.
* A $2 million cold fish storage and ice cube factory in Aceh committed by PT Erti Mahkota Sejati.
The foreign expansion projects include:
* A $23.08 million dry battery factory in West Java committed by PT Eveready Battery Company Indonesia.
* A $15 million plant to produce heavy equipment and components in Jakarta committed by PT Hitachi Construction Machinery Indonesia.
* A 14.53 million car equipment plant in West Java committed by PT Hino Indonesia MFG.
Domestic
The new domestic investment projects include:
* A Rp 875.50 billion shrimp farm and cold storage in Lampung committed by PT Central Pertiwi Bratasena.
* A Rp 586.57 billion portland cement factory in Central Java committed by PT Semen Gombong.
* A Rp 500 billion heavy equipment leasing business in West Java committed by PT Vinico Gria.
* A Rp 432 billion portland cement factory in North Sulawesi committed by PT Sulenco Whibawa.
* A Rp 390.50 billion fertilizer and ammonia factory in West Java committed by PT Pupuk Kujang Dua.
The Domestic expansion projects include:
* A Rp 985 billion portland cement factory in Central Java committed by PT Semen Nusantara.
* A Rp 354.69 billion glass factory in West Java committed by PT Mulia Glass.
* A Rp 67.39 billion spinning mill in West Java committed by PT Malakasari.
* A Rp 39.25 billion fodder and shrimp feed factory in West Java committed by PT Multi Phala Agrinusa.
BKPM also announced that it had canceled four domestic investment projects, two of which were supposed to be located in West Java -- a doll factory of PT Gema Aneka Toys Indonesia and a spinning mill of PT Sunsonindo Textile Industry. The other two were originally planned in Jakarta -- a doll factory of PT Ika Mandiri Inti Kreasi and an iron and steel plant of PT Dendrit. (yns)