Japanese investment in Indonesia to double
Asia Times, Oct 19, 2005
Japanese investment in Indonesia to double
JAKARTA - The Indonesian government expects Japan’s investment and the value of export by Japanese companies in Indonesia to double in the coming five years, Coordinating Minister of the Economy Aburizal Bakrie said here Monday.
"Up to 2009 Japan’s investment in Indonesia is expected to grow to US$22 billion or double its present investment," Aburizal said at a component market exhibition with participants including 44 Japanese businessmen.
He expressed optimism that the target of Japan’s investment will be met as the first-round negotiation between the Indonesian and Japanese governments on the Economic Partnership Agreement (EPA) has run smoothly.
The first-round EPA talks reached agreement about goods and services trade, investment, manpower flow and cooperation in other fields. The second round EPA talks are scheduled to take place in January 2006.
Japan’s investment from 1967 to 2004 accounted for about 19.5% of total foreign investment in Indonesia, making Japan the biggest investor in this country, according to Aburizal.
There are some 900 Japanese companies operating in Indonesia today with total investment of US$11 billion, and job opportunities for about 282,000 people. Their export value is expected to double in the coming five years. Their export and import value now account for 19.06% and 13.07% of the total value of Indonesia’s export and import, respectively.
Aburizal expressed his hope in his written message read out by Rachmat Gobel, vice chairman of Kadin (The Jakarta Chamber of Commerce and Industry), that Japanese business circles will actively participate in the 2nd Infrastructure Summit to be held in Indonesia from February 9-11.
The interest of Japanese business circles in entering various infrastructure construction projects in Indonesia should be the same as the commitment of Japanese businessmen in entering the component industry in this country, Aburizal stated.
In the 2nd Infrastructure Summit, the Indonesian government will offer infrastructure construction as well as expansion projects, such as for highways, railroads, seaports, power plants and clean water installations.
(Asia Pulse/Antara)
