Foreign investments in Yogyakarta plunge

YOGYAKARTA (JP): Foreign investment projects approved by the provincial administration of Yogyakarta during the period between April to Dec, this year fell to Rp 45 billion from a high of Rp 150 billion during the April to March period.

But the local investment office (BKPMD) said that with regard to the projects, the foreign investments reached 25, exceeding the provincial administration's target.

"We only anticipated 19 investment approvals for this year (2000) due to the political uncertainty, but the fact shows that within 9 months we have approved 25 investment proposals," Danu Priyanto Kusumothe, the head of the investment office, told The Jakarta Post at his office.

Priyanto said that all of the 25 investment proposals that were approved during the April-Dec period came from foreign investors from the United States, England, Austria, Australia, South Korea, and Japan.

The government this year began using the calender year for its budget. Because the last fiscal budget ended in March, this year's fiscal year will last from April to December.

According to the province's investment office, there have been 74 foreign investors operating businesses in Yogyakarta since 1967, with total investment of around US$ 132.4 million.

Most of them invested their money in tourism and its associated business areas as the city is known for its richness in tourist site particularly cultural heritage.

The domestic and foreign levels of investment reached their peak in 1997/1998 fiscal year, totaling respectively Rp 204.8 billion and $2 millions.

The amount of local investment sharply declined in 1998/1999 to only Rp 65.5 billion when social and political disorder in the country sank to its lowest degree during the year.

Priyanto said that most of the 25 foreign investments approved during the April to Dec period this year were for small and medium-scale companies mostly in handicraft production. (44)