RI investment approvals reach record level
RI investment approvals reach record level
JAKARTA (JP): Investment approvals reached their highest level this year with foreign investment commitments increasing by 68.4 percent to US$39.9 billion and domestic commitments by 31.1 percent to Rp 69.9 trillion ($30.3 billion).
"I think this year's record of foreign investments is simply too high and I'm afraid that investment approvals may decline in the coming years," State Minister of Investment Sanyoto Sastrowardoyo told a press conference here yesterday.
He explained that this year's foreign investments approved by the government up to yesterday were committed for the establishment of 799 new or expansion projects in the non-oil and non-financial sectors.
The projects, when operational, are expected to employ 361,553 people, comprising 353,172 Indonesians and 8,381 foreigners, he said.
For comparison, foreign investments approved by the government in 1994 reached $23.7 billion for 449 projects with plans to employ 353,172 people, including 7,161 foreigners.
Sanyoto noted yesterday that the petrochemical industry was the largest sector to attract foreign investments this year, with commitments of $19.3 billion, followed by the transportation business, with $5.5 billion, the power generation and water supply, with $3.5 billion, and the paper industry, with $2.5 billion.
Out of this year's foreign investment projects, 468 were export-oriented, with commitments to export part of the products to generate foreign exchange revenues of $15.7 billion per annum, he said.
Sanyoto, who is also chairman of the Investment Coordinating Board, said that Britain emerged as the single largest foreign investor this year with total investment commitments of $6.32 billion, followed by Japan with $3.79 billion, Australia with $3.71 billion, the United States with $2.77 billion, Hong Kong with $1.76 billion, Singapore with $1.46 billion and Germany with $1.34 billion.
However, cumulatively during the period between 1967 and 1995, Japan remained the largest foreign investor with total investment commitments of $27.11 billion, followed by Britain with $20.72 billion, Hong Kong with $16.36 billion, Singapore with $15.02 billion and the United States with $11.51 billion, he said.
The investment chief also disclosed that the number of foreign investment licenses revoked in 1995 declined to 16, with total investment commitments of $68.29 million, from 33 licenses with commitments of $179.34 million in 1994.
Sanyoto said that this year's domestic investments were committed for the establishment of 775 new and expansion projects.
Out of the domestic projects, 338 planned to export part of their products to earn $12.71 billion per annum after the start of their operations, he said.
He said this year's domestic investment projects, when operational, will employ 650,000 people, including 3,456 foreigners.
In 1994, the government approved 823 domestic projects worth Rp 53.3 trillion, with commitments to employ 623,582 people, including 3,914 foreigners.
Sanyoto said the government revoked licenses for 77 domestic investment projects worth Rp 1.6 trillion this year, as compared to the 129 projects worth Rp 4 trillion canceled in 1994.
He noted that the realization of cumulative foreign investment plans improved to 55.2 percent as of this year from 52 percent as of last year, while that of domestic investments rose to 44.6 percent from 42.8 percent.
The minister said that the inflow of foreign investments into Indonesia in 1996 will likely decline from this year's level due to tighter competition from other developing countries, such as Vietnam and China. (kod)