Recent riots not affecting investments: Sanyoto

Recent riots not affecting investments: Sanyoto

JAKARTA (JP): The riots which have hit several towns in the
last few months have not stopped foreign businesspeople investing
in Indonesia, State Minister of Investment Sanyoto Sastrowardoyo
said yesterday.

Sanyoto, also the chairman of the Investment Coordinating
Board, said the government had approved 80 foreign investment
projects worth US$3.4 billion in forestry, transportation,
hospitality and consultancy in the first three weeks of January.

"This is proof that the riots, which hit several towns, have
not affected foreign businesspeople's interest in investing in
the country," he said.

Riots have hit Jakarta and several towns in the last six
months. One of the biggest recent riots occurred in Tasikmalaya,
West Java, when angry mobs burned shops and public buildings
after police beat up teachers from local Islamic boarding
schools.

Analysts have feared that the riots could affect inflows of
foreign investment.

"The riots have had no effect at all on investment," Sanyoto
was quoted by Antara as saying after he reported to President
Soeharto on investment developments.

The minister said that one of the 80 foreign investments he
had approved was a giant oil refinery project of a Japanese
investor.

"The prediction that the national (Timor) car case would
affect the flow of investment from Japan has also proved wrong,"
he said.

The government has licensed President Soeharto's youngest son,
Hutomo Mandala Putra, to develop a national car. The license
exempts his company from taxes and duties when importing its cars
from its South Korean partner Kia Motors until its factory opens
in 1998.

The policy has drawn protests from Japan, the United States
and the European Union.

Since 1969, Japan has been the largest foreign investor in
Indonesia with 930 projects worth $36.8 billion, followed by
Britain with $29.8 billion worth of projects, Hong Kong with
$18.6 billion worth of projects, the U.S. with $13.2 billion
worth and Singapore with $11.8 billion worth.

Indonesia had targeted $97.7 billion worth of investment in
the Sixth Five-Year Development Plan from 1993 to 1999, compared
to $44.1 billion worth of investment for the previous Five-Year
Development Plan, he said.

The government approved 49 domestic investment projects worth
Rp 21 trillion ($8.8 billion) in the first three weeks of
January. This is equal to around 20 percent of the Rp 107
trillion worth of domestic investment projects that it approved
last year.

"Seeing these figures, the government is upbeat on reaching
the $97.7 billion investment target for the current Five-Year
Development Plan," he said.

Sanyoto also reported to the President on the planned visit of
an Indonesian delegation to Davos, Switzerland, to attend the
yearly World Economic Forum from Jan. 30 to Feb. 4.

The delegation will be headed by Coordinating Minister for
Production and Distribution Hartarto and its members will include
Minister of Foreign Affairs Ali Alatas and Minister of Education
and Culture Wardiman Djojonegoro.

About 1,800 heads of government, ministers and businesspeople
were scheduled to attend the meeting, he said. (jsk)