Investment now US$42.3m in Tangerang

Multa Fidrus, The Jakarta Post, Tangerang

Tangerang Regent Ismet Iskandar revealed on Monday that the regency had recorded almost a 100 percent increase in foreign and domestic investment worth a total of US$42.3 million in the first semester of this year.

"The 100 percent increase is a positive response from domestic and foreign companies due to our planned infrastructure development," Ismet told The Jakarta Post.

He said there would be 59 foreign and domestic companies involved in new investment.

He also said the regency recorded $22 million in total new investment during the same semester last year.

The Regency Investment Coordinating Board (BKPMD) head Muhyi Syarifuddin said that 70 percent of the increase was from foreign companies and the remaining 30 percent by domestic firms.

"Most of the foreign investors who have started building new companies or expanding their firms are from South Korea, Japan and Taiwan," he said.

After those three East Asian countries, the biggest foreign investors originated from Europe and the United States.

Muhyi also attributed the growth to the regency's commitment to develop infrastructure and said that fact made it more attractive than other areas.

The regency plans to build a container terminal and a fishing harbor for export and import activities in Sukawali village, Pakuhaji district.

It also plans to develop a 50-kilometer toll road from Serpong area to the harbor, through the Soekarno-Hatta International Airport and another toll road which will connect Serpong with Curug, Legok, Tigaraksa, Balaraja, Kresek, Kronjo, Mauk and Pakuhaji.

Observers earlier criticized the central government's announcement on the increase of foreign direct investment as "deceptive" since the amount was mostly a result of the change of status from domestic investment companies to foreign investment firms.