Major investors to start building projects in Indonesia
Jakarta, Feb. 15 (ANTARA): A number of major foreign investors will realise their investment in Indonesia now that the business climate in Indonesia is improving, the country's chief investment coordinator said.
Five foreign investors will develop industries and businesses in Indonesia this year, chairman of the Investment Coordinating Board (BKPM) Muhammad Lutfi said here yesterday after a meeting with President Susilo Bambang Yudhoyono at the presidential office.
The international companies included PT Asia Timur Perdana, which will set up a construction business with an investment worth US$263 million in the Jababeka industrial estate, West Java, and a Thai investor will start a cement company under the name of PT Semen Jawa with a total investment of US$95 million.
The others were PT Bio Energi Nusantara which will be engaged in the bio diesel sector with investment valued at US$41.41 million, PT Kirin Miwon which will initiate a food seasoning factory in Lampung, southern Sumatra, with a total investment of around US$87 million, and India's TVS motorcycle manufacture, which will relocate its production facilities in other Asian countries to Indonesia with an investment worth US$60 million.
"TVS will be operating in the Jababeka industrial estate. They have requested a permit, and their factory is currently under construction," said Lutfi.
Lutfi also reported to the President that three palm oil plantation companies were planning to open new plantation areas in Indonesia.
They were PT Sebakis Inti Lestari in East Kalimantan, PT Putra Makmur Lestari in West Kalimantan, and PT Mitra Tani Tata Lestari in Jambi, Sumatra, with investments respectively worth around Rp330 billion (about US$31 million), Rp400 billion (about US$38 million), and Rp327 billion (about US$30 million).
"There is another very major investment, between January and February 2006, PT Oso Multi Pratama will develop a basic organic chemical industry based on oil and gas in East Kalimantan with an investment of Rp4.841 trillion (around US$500 billion). This is a breakthrough and fresh air for investment planning in Indonesia," he said.
Lutfi also reported to the President on the country's investment performance during 2005. In January-December 2005, the realisation of investments increased by around 96 per cent, reaching US$12.14 billion in 2005 from US$6.21 billion in 2004.
Last year's overall investments consisted of US$3.23 billion in domestic investments, and US$8.91 billion in foreign investments.
"Domestic investments were mostly in the paper and printing industry, food, plantations, construction, chemical and pharmaceutical industries. While foreign investors were mostly in telecommunications, chemical, construction, food, metal, machinery, and electronic industries," he said.