Mon, 24 Jan 2011

Jakarta (ANTARA News) - The Investment Coordinating Board (BKPM) has set a target of luring Rp240 trillion of investment this year, up 15 percent of the realized investment of Rp208.5 trillion last year.

"We will achieve the 2011 investment target by improving policies related to investment, providing better services, granting fiscal facilities, and accelerating the development of infrastructure projects," BKPM Chief Gita Wirjawan said on Sunday.

He said investment was expected to continue to rise this year after growing significantly by 54.2 percent to Rp208.5 trillion from Rp135.2 trillion a year earlier.

The 2011 investment climate would largely depend on the domestic political and economic conditions which had of late been very conducive, he said.

If the economic growth could be maintained at a range of 6-6.5 percent and the inflation rate reached 6-7 percent this would give positive signals to investors, he said.

Investors particularly foreign investors had great interests to invest in the country as reflected by the upward trend in foreign investment inflows all the time, he said.

In 2010, foreign investment inflows reached Rp148 trillion, a 52 percent increase compared to Rp97.4 trillion the year before. Meanwhile, domestic investment rose to Rp60.5 trillion in 2010 from Rp37.8 trillion a year ago.

Most of the foreign investors came from South Korea, India and a number of Middle Eastern countries.

Gita said since Pohang Steel and Iron Company (Posco) of South Korea signed a cooperation agreement with Indonesia`s state-owned steel maker PT Krakatau Steel to make an investment of Rp6 trillion, more and more South Korean investors had expressed interests in investing in the country.

One of them was tire maker Hancook Corp which would build a tire plant at a cost of US$1.2 billion in Bekasi, West Java, this year. The plant was expected to be completed in 2014, he said.

"I think Posco has set a momentum of South Korea`s investment growth in Indonesia," he said.

The same was also true with Indian investors, he said adding 15 Indian companies including Tata, Adani Group, and Reliance Power planned to invest a total of US$15 billion in Indonesia.

Last year, Singapore was listed as the biggest investor in Indonesia with US$5,005.7 million, with Britain trailing behind in the second place with US$1,892.1 million.

This was followed by the United States with US$930.8 million, Japan with US$712.6 million and the Netherlands with US$608.3 million.(*)