RI plans to promote investment to roadshow

RI plans to promote investment to roadshow

SEOUL (Reuters): Indonesia will launch a global roadshow to promote investment in the troubled but resource-rich country following next week's general elections, Investment Minister Marzuki Usman said on Wednesday.

Marzuki told Reuters on the sidelines of a Pacific Rim investment conference the Indonesian cabinet would meet in July to devote a full session to boosting foreign investment.

The country would then embark on a global roadshow aimed at convincing potential investors that Indonesia, the world's fourth most populous nation, was recovering from its political and economic crises.

"I wanted to have the full confidence of the government and business people," Marzuki said of the cabinet meeting that would endorse his foreign investment drive.

"After that we'll go for the roadshow with decisions on the spot," Marzuki said.

He said Indonesian embassies would be empowered to issue temporary licenses to prospective foreign investors.

That would allow them to set up businesses in Indonesia while awaiting a permanent license from Jakarta.

Marzuki also confirmed he was proposing to parliament as an investment incentive that foreigners who invest at least $1 million in Indonesia would be eligible for permanent residence.

The relative lack of violence in the run-up to next Monday's vote should send reassuring signals to foreign investors.

"It's a good signal," he said. "It shows Indonesia is a civilized country."

Marzuki said foreign investment was still in the doldrums following the collapse of the Indonesian rupiah in late 1997 and the country's subsequent plunge into severe recession.

"I'll be happy if we get back to $400-$500 million this year (in actual investment)," he said.

The investment ministry said on Monday that foreign investment approvals between January 1 and April 15 came to $940 million with 279 projects approved.

It gave no comparative figures for last year.

Overall, foreign investment in 1998 fell to $13.8 billion from $33.8 billion the previous year.

Marzuki is a guest speaker at the an APEC (Asia-Pacific Economic Cooperation Forum) Investment Mart, which has attracted some 2,000 officials and business leaders from the group's 21 member economies.