Kadin to publish 'industry map'
Kadin to publish 'industry map'
Tony Hotland, Jakarta
The Indonesian Chamber of Commerce and Industry (Kadin) will
publish an "industry map" to help domestic and foreign investors
in making investment decisions in the country.
"This map is intended to provide a sort of investment
guideline in the next five years especially for foreign
investment to speed up our economic recovery," said Kadin
chairman Mohamad S. Hidayat on the sidelines of a meeting with
Korean businessmen here on Wednesday.
Hidayat said that the map would help investors in deciding
which areas and commodities to invest in, and describe the focus
of Indonesian industries: whether it would be more labor
intensive or natural resources based.
"The map will cover not only the manufacturing and mining
sectors, but also plantations, agriculture, food, fisheries, high
technology, and other sectors," he said.
The chamber has been working with industry associations and
Japanese businessmen, and plans to ask consultant McKenzie
International to assist in the making of the map. The publication
is scheduled for September this year.
"McKenzie International was once asked by India to help make
the map for its information and technology industry. Now, India
is quite competitive in this sector.
"We are also trying to ensure that the map also explores
conditions demanded by most foreign investors. Most of them still
have concerns about law and order problems, such as legal
uncertainty and regulations on labor here," he explained.
Legal uncertainty and labor issues have been the major
concerns for many foreign investors, a factor which has
discouraged them from coming and prompted them to relocate their
business in other countries.
Hidayat also said that Indonesia had been losing its
competitiveness significantly compared to other Asian countries,
and was currently equal to Cambodia and Laos.
"In order to reach an economic growth rate a 6 percent per
year, we need real investment of around Rp 315 trillion or
approximately US$35 million. The government's investment is still
minimum, therefore the larger part is expected to come from
private domestic and foreign investors," he said.
Data from the Investment Coordinating Board (BKPM) shows that
foreign investment approvals during the first quarter of the year
totaled 209 projects with a combined investment value of $1.5
billion.
Popular sectors were trading and repair (72 projects),
services (36), metal machinery and electronic industry (17), and
hotel and restaurant (16).
There was enormous investment value in the metal ($538.9
million), construction ($282.2 million), hotel ($263.7 million),
and food (174.8 million) sectors, with favored investment
locations in Jakarta, West Java and Banten.