Major companies start expansion projects: Luhut

Major companies start expansion projects: Luhut

JAKARTA (JP): Although foreign investors are still reluctant
to enter the country, several major existing companies have
started to expand their businesses, Minister of Industry and
Trade Luhut B. Panjaitan said on Tuesday.

"At least three major companies will start expanding next
year," he said during a hearing with the House of
Representative's Commission V for industry and trade affairs.

Luhut said the companies were electronics' manufacturers PT
Sony Electronics Indonesia and PT Matsushita Kotobuki Electronics
Peripherals Indonesia (MKPI), and computer-printer manufacturer
PT Indonesia Epson Industry.

Sony Electronics would increase its exports to $350 million
next year, and Epson to $1 billion from $650 million, the
minister said. Luhut did not disclose the export target of
Matsushita but he said that the electronic giant's exports from
Indonesia would rise to about 3 percent of Indonesia's gross
domestic product (GDP) in 2003 from only 0.5 percent of GDP in
2000.

The minister stated that the three electronic giants'
expansion commitments reflected the growing confidence of foreign
investors in Indonesia.

He said that the economy had also shown signs of recovery as
reflected by economic growth of 2.36 percent in the first three
months of the year and 0.38 percent in the second quarter of
2000.

He added that he expects growth of between 4.5 percent and 5.5
percent in 2001, considering the emergence of a more stable
economy, broader growth of exports and a better investment
climate.

Exports between January and August totaled $40.25 billion,
consisting of $8.98 billion from oil and gas and $31.26 billion
from the non-oil and gas sector, representing an increase of
31.78 percent and 25.53 percent respectively over the same period
last year.

Exports this year were targeted at $56.7 billion, with $12
billion coming from the oil and gas sector, and $44.7 billion
from the non-oil and gas sector, Luhut said. This year's
estimated total exports would far exceed last year's $48.6
billion.

"We are optimistic that exports will exceed the original
estimate of $60.4 billion," he said. (tnt)