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.