JIEP expects high occupancy rate this year

JAKARTA (JP): State owned PT Jakarta Industrial Estate Pulogadung (JIEP) expects a stable occupancy rate this year despite negative reports on the country's investment climate.

JIEP president Otje Soetoto said here on Wednesday that he was optimistic that the unfavorable reports regarding Indonesian investment would not really hurt investors confidence.

He cited that the company's occupancy rate, which reached 95 percent at present, would stay high in the coming months, although some analysts feared the uncertainty in the investment climate would scare off foreign investors.

"Our high occupancy rate shows that confidence is high among local and foreign investors in Pulogadung, however," said Otje during the company's business meeting here on Wednesday.

JIEP, which provides industrial land sites, standard factory buildings and warehouses to local and foreign investors in its 415-hectare industrial estate, in Pulogadung, East Jakarta, has 420 occupants.

Most of the companies are involved in metal-based, printing, and pharmaceuticals industries, Otje said, adding that 30 percent of the existing companies were operated by foreign investors.

He acknowledged that some of the company's occupants had quit due to financial difficulties or because their leasing contracts had expired.

Such a withdrawal is common in the company because there are always newcomers, he said.

He stated that JIEP would also increase security in the area, giving investors more assurance that they were safe to do business in Pulogadung.

Otje added that the business activities at Pulogadung were not affected by recent riots and labor protests since the location was far enough away from the turmoil.

Otje said that the company planned to build an airport and repair the main road, buildings and environment in the industrial area to make life more convenient for potential investors.(07)