Indonesia expects record year for foreign investment
Indonesia expects record year for foreign investment
SINGAPORE (Reuter): Indonesia is heading for a record year for
foreign investment, with Japan leading the list of countries
putting money into new projects in the country, the State
Minister for Investment, Sanyoto Sastrowardoyo said.
Sanyoto, speaking at an investment forum here, said that
despite its current strength, foreign investment had yet to show
the impact of further deregulation measures introduced by the
Indonesian government in May.
The minister said the first six months of 1994 saw a total
foreign investment of US$9.5 billion in 171 non-oil and non-
financial projects approved, against a 1993 year's total of $8.14
billion in 329 projects.
Foreign investment worth $10.32 billion in 305 projects was
approved in all of 1992.
"Looking at the performance in the first semester (six months)
of 1994, there is no doubt that by the end of this year,
Indonesia will have a new record on domestic and foreign
investment approvals," Sanyoto said.
He said domestic investment of 32.401 trillion rupiah in 457
projects had been approved in the first six months of 1994.
That compares with 39.450 trillion rupiah in 548 projects in
1993 and 29.342 trillion rupiah in 436 projects in 1992.
Cumulative
"Cumulatively since 1967, up to June 30, 1994, we have
approved $79 billion of foreign investment in 2,882 projects plus
277.8 trillion rupiah or about $132.2 billion of domestic
investment in 8,657 projects," the minister said.
Sanyoto said Japan had always been Indonesia's biggest backer,
investing $17.6 billion in 668 projects, but that the identity of
the second-biggest investor had varied.
Two months ago, Taiwan took the number-two spot. However, last
week a large electric power project with Hong Kong backing
enabled the British colony to displace Taiwan.
In May, Jakarta modified foreign investment rules to allow
joint-venture companies in which the Indonesian stake is as
little as five percent to invest in industries including
telecommunications, shipping, airlines and mass media.
Wholly foreign-owned companies, although restricted in their
business, can get a license to operate for an initial 30 years.
They have to sell part of their shares to Indonesian citizens
after 15 years.