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)