Jakarta eyes Rp 34t investment
Jakarta eyes Rp 34t investment
Novan Iman Santosa, The Jakarta Post, Jakarta
Despite failing to reach its target for approved investment last
year, the Jakarta administration is optimistic that greater
approved investment will be obtained this year.
Last year, Jakarta set a target of Rp 28.16 trillion (US$3.1
billion) of investment but could only reach 60 percent to 70
percent of the target with a projected economic growth of 4.62
percent.
Meanwhile this year, the City Capital Investment and Business
Empowerment Board set a target of some Rp 34.48 trillion with an
assumed economic growth of 5.53 percent.
Private investment is still the largest expected contributor
at Rp 32.29 trillion, while government investment is set at Rp
2.19 trillion.
In the realm of private investment, foreign investment is
expected to reach Rp 4.03 trillion while domestic investment
constitutes some Rp 5.66 trillion. The remaining Rp 22.60
trillion is expected from investment which does not receive
incentives from the government.
"We are still calculating the final amount of the approved
investment for 2002. We did not reach the target but the rough
estimate of 60 percent to 70 percent was still a good
achievement, considering the current situation," Board chairman
Hary Sandjojo told The Jakarta Post on Wednesday.
"Foreign investors still think of Jakarta, and Indonesia in
general, as an exotic and sexy investment destination although we
have plenty of work still to do," he said.
Hary cited labor problems and fiscal policies, which fall
under the central government's jurisdiction, as areas that can be
improved.
"It is also important to keep the security and safety for all
investors so they are willing to stay here. That is the least
what we can do."
As of September 2002, the city had recorded a total of 3,691
foreign investment projects approved worth nearly US$20 billion
since 1967.
During the same period, there were 1,941 domestic investment
projects approved for some Rp 71 trillion.
Meanwhile, the realized foreign investment stood at 776
projects worth $8.86 billion and the materialized domestic
investment was only 469 projects worth some Rp 18 trillion.
The service sector is at the top in both foreign and domestic
investment with approved investment of $13.29 billion since 1967.
Hary said Jakarta could not accommodate the labor-intensive
sector as it required larger amounts of land and workers.
"We are aiming at getting investment in cleaner, capital-
intensive industry as well as the service and tourism sector."
In an attempt to lure investors, mainly foreign ones, Hary
said the board would organize an investor forum from Aug. 28
until Aug. 31 in Jakarta with participants expected from 10
countries.
"Most of the participants are our major traditional investors
from Asia and Europe," he said.
"We'll also invite South Africa because the country is the hub
for distribution of goods in Africa. The country is important to
widen our market on the continent."
In conjunction with the investor forum, the board will also
organize business meetings, seminars and workshops.
The investment board has also planned to participate in
several trade shows in Asia, Europe and South Africa to promote
the city more.