Japanese firms turn to RI

Japanese firms turn to RI

TOKYO (Reuters): The number of Japanese firms investing in Indonesia has jumped since last month's presidential elections, Japanese trading house Marubeni Corp. said on Monday.

Some 10 companies have applied to join MM2100, an industrial park near Jakarta developed by Marubeni, since Abdurrahman Wahid was sworn in as Indonesia's new president on Oct. 20, an official at Marubeni said.

"Removal of political uncertainty seems to have played a significant role in lifting Japanese business confidence in Indonesia," the official said.

Those 10 firms were expected to join the park before the end of this year, the official said.

Currently, about 100 firms, including 80 Japanese firms, are stationed in MM2100.

Japanese firms had been reluctant to start new businesses in Indonesia since the country was swept by a wave of violence, most notably in May 1998, after the Asian currency crisis of 1997.