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)