U.S. giant firms eye investment in North Sumatra

U.S. giant firms eye investment in North Sumatra

Apriadi Gunawan, The Jakarta Post/Medan

Some 20 representatives of various giant U.S. companies visited
on the weekend Medan in North Sumatra to look into investment
possibilities in the province.

The companies -- including energy firms Exxonmobil Corp and
ConocoPhilips and mining firm Freeport McMoRan -- made queries as
to the local administration's plan to move Polonia International
Airport from its current location in Medan to Kuala Namu in Deli
Serdang district, at a dinner party hosted on Sunday by Governor
T. Rizal Nurdin.

They also asked about plans to develop two new sea ports in
Tanjung Beringin and Tanjung Sarang Elang, both in Labuhan Batu
district.

In answer to their queries, Rizal said that the planned sea
ports were needed to accommodate intense business activities with
other countries, currently managed by Belawan and Tanjung Balai
ports.

"One or two ports is not enough," said Rizal.

He told the businessmen that the relocation of Polonia Airport
was urgently needed, as it was currently located in the city
center, limiting parking space.

Such a move would be costly, added the governor, at around
US$584 million. "That's why the development of Kuala Namu Airport
has not been realized, although it was planned seven years ago."

Aside from the transportation sector, the businesspeople also
showed interest in investing in telecommunications.

According to data from the U.S. Embassy, there are about 15 to
20 American companies operating in North Sumatra, with a total
investment of about $65 million.

Data from the Investment Coordinating Board (BKPM) shows that,
between January and October this year, 16 investment projects in
Indonesia proposed by American companies were approved, with a
total investment of $120.2 million.