Jakarta, Oct 10 (Antara) - The Indonesian Capital Investment Coordinating Board (BKPM) is vying for new investments from Japan's Okayama Prefecture in the automotive component factory and from South Korea in various sectors.
The South Korean investments being expected are estimated to be worth US$600 million.
A major automotive component company, which so far supplied components for Mitsubishi cars, is interested in developing an auto component factory in Indonesia.
On investment from South Korea, BKPM Chairman Franky Sibarani said on Friday his board has identified that South Korea is interested in making a new investment in Indonesia, worth US$600 million.
The BKPM said various firms have evinced an interest to invest in different business sectors, such as a ferronickel smelter, valued at US$300 million, biomass worth US$100 million, palm oil refineries and its derivatives, and the animal food industry and fruit processing, with a combined value of US$200 million.
Sibarani said the South Korean interest was identified through an investment and business seminar on Indonesia, organized by the Indonesian Investment Promotion Center (IIPC) and the Asean Korean Center, on Tuesday.
"The BKPM will continue to follow up on the interest shown by South Korea to invest in Indonesia so that investors from that country are able to carry out their investment plans through their principle permit proposals," Sibarani said.
The BKPM chairman said the South Korean interest could be categorized as "serious intention" to make investment in the country because they already have a picture in their mind as to where exactly will they be investing.
This is evident from the fact that a South Korean industrial firm for crude palm oil (CPO) product refineries has explored the possibility of making investment in Sei Mangke, North Sumatra.
Other South Korean companies which are doing business in the fodder and fruit processing sector have also explored investment opportunities in East Java. The ferronickel industry on the other hand has explored industry locations in Central Sulawesi.
"The BKMP Investment Marketing Team for Korea and the board's representative office in the South will continue to provide assistance to South Korean investors so that they can soon submit principle business licenses," he said.
During an investment marketing activity in Seoul, attended by 50 potential South Korean investors, the BKPM's Director for Regional Facilitation Promotion, Endang Aloysia, explained a number of concrete steps and strategies to make Indonesia an interesting investment destination for domestic and foreign investors.
The strategic steps included an integrated single door online service and licensing system which will come into effect. The BKPM will also apply a maximum of three hour investment licensing service system for investors who make an investment of a minimum Rp100 billion or one that would absorb at least 1,000 workers.
Indonesian Deputy Ambassador to South Korea Cecep Herawan, who also attended the event, stressed the importance of South Korean investment and the consequent contribution to Indonesia's economic growth.
Moreover, the government of President Joko Widodo is introducing investment policy packages which will streamline the bureaucracy with a view to increase the flow of investment into Indonesia.
According to the BKPM, the number of proposals being submitted by South Korean investors for principle business permits during the first semester of 2015 has increased by 39 percent to US$1.48 billion from US$1.06 billion during the same period last year.
The level of South Korean investments realized in the first semester of this year also showed an increase of 20 percent, from US$650 million in the same period last year to US$790 million this year.
In the first half of this year, South Korea was ranked fourth in foreign investments, amounting to US$0.8 billion, after Malaysia (US$2.6 billion), Singapore (US$2.3 billion) and Japan (US$1.6 billion).
As for Japan, the BKPM is also eying investment from Okayama Prefecture. Okayama Prefecture Governor Ryuta Ibaragi visited Indonesia this week to explore investment opportunities.
One of the Japanese investors is an automotive component manufacturing firm.
During his visit to the BKPM here on Friday, Governor Ibaragi said the automotive component company, which supplies components for Mitsubishi cars, was interested in establishing an auto component factory in Indonesia.
"There are 422 companies from Okayama Prefecture that have made investments outside Japan. In Indonesia, we have a number of large companies which have made investments," he said in a written statement made available in Jakarta on Saturday.
Meanwhile, the governor of Okayama Prefecture said there is considerable interest among Japanese businessmen to conduct business in Indonesia. However, there are a number of concerns about the investment climate in Indonesia, expressed by investors from Okayama Prefecture, including the problem of the country's unpredictable wage system, he said.
Ibaragi said that during his visit to Indonesia, he found Indonesians as people quite open to Japanese companies.
"Regarding the MRT project, we thank the Indonesian government for reposing its trust in a Japanese company. Of course, we will not let them down and will maintain that trust," he said.
BKPM Chief Franky Sibarani said Japanese companies were accorded priority when it came to assistance in investment facilities.
Japanese investment is the main component of the economic growth driving forces in Indonesia, he said.
"We are ready to assist investment plans of companies from Japan. The Marketing Office for the Japan area and the BKPM representative office in Tokyo could be used by investors and companies in Okayama to plan business activities in Indonesia," he said.
He noted that his office was planning to conduct an investment promotion activity in Yokayama early next year to win over the Japanese investors' interest.
"One of the major investors is Sumitomo. We will invite a number of companies which have made investments in Indonesia to share their successful experiences with their colleagues in Japan," Sibarani said.***3***(T.A014/INE/S012)EDITED BY INE
(T.A014/B/BESSR/Suharto) 10-10-2015 20:34:1 |
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