Japanese bank to promote direct investment in RI

JAKARTA (JP): The Investment Coordinating Board and the Bank of Nagoya from Japan signed a general agreement yesterday to promote direct investment from Japan to Indonesia.

"This is our fifth agreement of its kind signed so far with our Japanese counterparts," board chairman Sanyoto Sastrowardoyo, who is also state minister for investment, said at the signing ceremony.

The board signed a similar agreement with Bank of Tokyo in August 1990, the Daiwa Bank of Kyoto in September 1990, the Fuji Limited/Fuji Research Institute Corporation in February last year and the Nomura Research Institute of Kobe last October.

Under yesterday's agreement, the investment board will provide information on investment conditions and opportunities in Indonesia and other matters pertaining to investment. The Bank of Nagoya will deliver the information to clients interested in expanding their businesses to Indonesia.

The Bank of Nagoya can also organize business missions to Indonesia or business gatherings in Japan, to which the investment board would send officials to present the investment opportunities in Indonesia.

Japan has been the largest foreign investor in Indonesia since 1967. With a cumulative investment of US$23.05 billion in 735 projects, Japan is responsible for 18.5 percent of the total foreign investment in Indonesia of US$124.7 billion.

During the first seven months of this year, the investment board approved $29.4 billion in foreign investment in 477 projects, far exceeding the 1994 figure of $23.7 billion in 449 projects. In the January to July period, approved Japanese investment reached $1.6 billion in 82 projects, making it the fourth largest foreign investing country after Britain (with investments worth $5.6 billion), Australia ($3.4 billion) and the United States ($2.6 billion).

Akihiro Aoi, the managing director and vice president of the Bank of Nagoya, said his bank's corporate clients include large scale corporations and small and medium scale firms. The latter are becoming increasingly interested in Indonesia.

"These medium and small scale firms in Central Japan have become the major clientele of our bank," said Aoi. "They have recently been deeply impressed by the rapid economic growth and firm industrial development in Southeast Asia, especially in Indonesia, and, therefore, they are strongly motivated to invest in this country."

The Bank of Nagoya, as indicated by its name, has its head office in Nagoya in Central Japan. It has 126 branches throughout the major industrial area between Tokyo and Osaka. (rid)