Indonesia targets US$13 bln investment from Japan

Indonesia targets US$13 bln investment from Japan

Franky Sibarani. (ANTARA)

About 95 percent of Japanese investments are still concentrated on Java Island ..."
Jakarta (ANTARA News) - The Indonesian Capital Investment Coordinating Board (BKPM) has set a target to attract US$13 billion in investment commitments from Japan in 2016, the BKPM said in a statement Saturday.

The commitment target was expected to come from the number of principle licenses issued for Japan in Indonesia, BKPM Chief Franky Sibarani told a seminar on investing in Indonesia's industrial sector.

"The Japanese investors have the character that needs the cooperation of all parties, both the central and regional governments. We hope the BKPM and the Indonesian Embassy in Tokyo (BKPM) would continue to increase cooperation to attract as many Japanese investors as possible," Franky said.

Japan is the second largest investor country in Indonesia after Singapore with a total investment of US$14.6 billion, he said. It contributes some 10.5 percent of the total investment entering the country since 2010 until the third quarter of 2015.

The biggest investment sectors are the transportation industry, metal industry, machines, and electronics, apart from the chemical industry, pharmacy, and housing. The other sectors are industrial/office areas and the food industry.

"About 95 percent of Japanese investments are still concentrated on Java Island and the remaining five percent are scattered in various other Indonesian regions," Franky said.

In the presence of 183 Japanese investors attending the seminar, Franky explained the Indonesian governments efforts to improve the countrys investment climate, including the launch of the three-hour service for the issuance of investment licenses.

The BKPM chief also held one-on-one meetings with a number of companies interested in investing in Indonesia.

The BKPM has registered US$11.4 billion investments between October 22, 2014 and December 4, 2015. Investment commitments which had obtained licenses on principle totaled US$5.7 billion.