Foreign investments likely to increase

Foreign investments likely to increase

JAKARTA (JP): Foreign investments, which substantially
decreased last year, will most likely increase again this year,
State Minister of Investment Sanyoto Sastrowardoyo said here
yesterday.

Sanyoto, who is also chairman of the Investment Coordinating
Board (BKPM), said in a seminar on the petrochemical industry
that foreign investments approved by the board during the period
between Jan. 1 and June 10 had reached US$5.1 billion.

According to BKPM, foreign investments fell sharply from
$10.32 billion in 1992 to $8.14 billion last year, while domestic
investments increased from Rp 29.34 trillion ($13.5 billion) to
Rp 39.45 trillion.

"We are very optimistic that before the end of 1994, the total
investment approvals could exceed the 1993 figures," said
Sanyoto, whose speech was read by R. Napitupulu, a deputy
chairman of BKPM.

He said Indonesia will need total investments of Rp 660.1
trillion in the next five years, of which Rp 354.6 trillion is
expected from the private sector, including foreign investors.

Sanyoto said that during the last 25 years, domestic
investments committed for the development of the chemical
industry reached Rp 102.4 trillion or 36 percent of the total
domestic investment commitments of Rp 227.6 trillion. Foreign
investments for the industry were recorded at $24.2 billion,
compared to total foreign investments of $74.7 billion during the
same period.(yns)