Foreign investments decline sharply
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)