Japan remains on top of foreign investor list

JAKARTA (JP): Japan topped Indonesia's foreign investor list this year with US$7.7 billion approved in 145 projects, State Minister of Investment Sanyoto Sastrowardoyo said over the weekend.

Britain followed with $3.4 billion in 38 projects, Singapore with $3.1 billion in 134 projects, Kuwait with $1.7 billion in one refinery project and Thailand came in fifth with $1.6 billion in three projects.

"Japan had been the biggest foreign investor in Indonesia since 1967, in number of projects and investment values," he said earlier at a year-end press conference.

However, in terms of value, Britain beat Japan last year with total investments reaching $6.3 billion approved in 34 projects, while Japan came second with $3.8 billion in 135 projects, he said.

That resulted from the larger amount of Britain's oil refinery projects approved by the government, Sanyoto said.

"Japan's position as the biggest foreign investor recovered this year as it's investment value to Indonesia increased by 22 percent to reach $7.7 billion from $3.8 billion in 1995," he said.

The total foreign investment in Indonesia this year was up in terms of numbers but down in terms of value, the minister said.

Approved foreign investment projects reached 959 this year, up 20 percent from 799 the previous year, he said, adding that the amount of foreign investment declined by 25 percent to $29.9 billion from $39.9 billion last year.

The decline, he said, was caused by the fewer recorded big investment projects this year as compared to last year.

This year's approved foreign investment projects were concentrated on the chemical industry valued at $7.4 billion, electricity, gas and drinking water at $3.8 billion, steel and paper industries each at $2.9 billion, and the property sector at $2.6 billion, he said.

According to the foreign investment approval data released earlier by the Investment Coordinating Board, about 48.1 percent of licensed foreign investment projects would be realized this year.

Sanyoto could not give complete figures on the rate of implementation of the licensed investment projects because most of the investors did not bother to report to the board after obtaining licenses.

But past data showed that actual investments averaged between 45 percent and 50 percent of the total licensed.

Sanyoto, also the chairman of the investment board, said total investments approved by Indonesia in 1996 were greater than those approved by other ASEAN member countries.

"Foreign investments approved by Singapore, Malaysia and Thailand in 1996 totaled respectively $3.1 billion, $1.4 billion and $1.6 billion as against Indonesia's $29.9 billion," he said.

Following are three tables on foreign investment approvals released by the board. (04)