Investment approvals decrease

Investment approvals decrease

JAKARTA (JP): Total foreign investment commitments approved in
the May-June period decreased to US$225.85 million from $1.78
billion in the April-May period.

The Investment Coordinating Board (BKPM) said in its latest
monthly report that domestic investment commitments in the May-
June period also decreased to Rp 3.05 trillion ($1.41 billion)
from Rp 4.85 trillion ($2.24 billion) in the previous monthly
period.

The report explained that foreign investments approved by the
government during the May-June period were committed for 15 new
projects worth $125.16 million and for 17 expansion projects
worth $100.68 million.

In comparison, during the April-May period, the government
approved 37 new foreign projects worth $697.51 million and 26
expansion projects worth $1.12 billion.

The report also noted that the domestic investment commitments
approved in the May-June period comprised 56 new projects valued
at Rp 1.95 trillion ($902 million) and 36 expansion projects
valued at Rp 1.09 trillion. In the previous monthly period, the
government approved 84 new domestic projects worth Rp 3.49
trillion and 43 expansion projects worth Rp 1.35 trillion.

Projects

The report showed that the largest foreign investment
commitment approved in the May-June period was made by PT Asa
Phil International, with $30 million to be invested in the
integrated fish industry such as cold storage, fish canning and
fish flour production in North Sulawesi.

The other new foreign investment projects include:

. A $25 million garment plant in West Java committed by PT
Giordano Manufactures Indonesia.

. Hotel and accommodation facilities worth $16.27 million in
East and West Java committed by PT Hotel Graha Sanbass Corp.

. A $9 million sawmill in North Sumatra committed by PT Koshi
Bintika.

The foreign expansion projects include:

. A $25 million hydrogen peroxide plant in West Java owned by
PT Peroksida Indonesia Pratama.

. A $24 million thread-mills plant in West Java owned by PT
Elegant Textile Industry.

. A $10.12 million chemistry plant in West Java owned by PT
Pulo Synthetics.

The new domestic investment projects include:

. A Rp 571.73 billion portland cement factory in Central Java
committed by PT Himkonan Pertiwi.

. A Rp 105.65 billion integrated palm oil plantation and
refinery in Riau committed by PT Alam Sari Lestari.

. A Rp 96.07 billion palm oil plantation and refinery in Jambi
committed by PT Tunjuk Langit Sejahtera.

. A Rp 86.21 billion shopping center in Yogyakarta committed
by the board of directors of the Kusumajaya Cooperative.

The domestic expansion projects include:

. A Rp 191.16 billion telecommunications facility in Jakarta
owned by PT Bakrie Electronics Company.

. Hotel and office building projects worth Rp 161.29 billion
in East Java owned by PT Singa Barong Kencana.

. A Rp 126.74 billion textile factory in West Java owned by PT
Melvin International Synthetics.

. A Rp 102 billion roof tile plant in West Java owned by PT
Lantai Keramik Mas.

Cancellation

BKPM also announced that it had canceled licenses for six
domestic investment projects, five of which would have been built
in West Java by PT Fimeco Perkasa Timber Industries (which
originally planned to set up an aluminum foil plant), PT Graha
Mitra Sentosa (an industrial estate), PT Djagat Kilat (coal
mining), PT Sanindo Primadaya (a textile plant) and PT Apindo
Prima Karya (a twistable plastic film plant). The other revoked
license was formerly given to PT Diamond Raya Timber, which
planned to set up a logging and sawmill project in Riau. (yns)