Mon, 07 Feb 2011

Jakarta (ANTARA News) - The Indonesian government expects investment to reach US$150 billion to accelerate development efforts in various fields.

"We are expecting US$150 billion investment," Industry Minister MS Hidayat said after attending a limited cabinet meeting on business at the presidential office here on Friday.

Hidayat said the investment was needed among others to develop the agricultural sector, the mining sector and a number of industries which could give an added value.

He said detailed calculation of the investment would be carried out by the Investment Coordinating Board (BKPM).

BKPM chief Gita Wirjawan meanwhile said on a separate occasion that the US$150 billion investment was expected to come from home totalling US$50 billion and from abroad US$100 billion.

"It is in line with the concept of domestic-foreign partnership," he said.

Gita said the location of investment projects would spread in Indonesian western, central and eastern regions. He hoped the investment target would be achieved in three to five years as of 2011.

He said among the potential investors are India (US$15 billion), South Korea (US$15 billion), Japan (US$59 billion), France (US$4 billion) and Russia (US$2 billion).

Coordinating Minister for Economic Affairs Hatta Rajasa meanwhile said the investment targeting was part of efforts to accelerate and expand national economic development.

Hatta said he had said before the President that a working meeting would be held with the business as well as state-owned companies on February 21, 2010 from which "we will know how much investment the state-owned companies would commit to the infrastructure development."

He said the government would also hold a meeting with a wider business community on March 28-29 and from the coordination the government hoped Indonesia`s economic vision could be made especially with regard to state-owned companies` commitment to development.

Hatta said the government would prioritize state-owned companies` investment. Only after local investors are accommodated would the government accommodate foreign investors that have expressed their commitment such as Japan, South Korea and India.(*)