Investment board inaugurates first plant in Suge Industrial Zone

Investment board inaugurates first plant in Suge Industrial Zone

Head of the Investment Coordinating Board (BKPM) Franky Sibarani. (ANTARA FOTO/Widodo S. Jusuf)

Belitung, Bangka Belitung (ANTARA News) - Head of the Investment Coordinating Board (BKPM) Franky Sibarani inaugurated the first plant operating in the Suge Industrial Zone, Belitung District, Bangka Belitung Province, on Friday.

The PT Billiton Plywood factory is engaged in the U$20 million worth plywood manufacturing industry.

"The company has realized the investment plan amounting to Rp161 billion. The factory is located on a 22-hectare plot of land and is supported by 300 workers," Sibarani noted here on Friday.

Based on BKPMs data, the company has invested in the Suge Industrial Zone.

"President Joko Widodo has urged me to promote investment opportunities in Belitung, particularly the development of the Suge Industrial Zone and the Port of Tanjung Batu in Belitung district," he revealed.

"We will undertake efforts to promote the industrial zone," Sibarani remarked.

The plywood manufacturing company is the first to build a factory in the industrial zone.

It was earlier proposed that the Suge Industrial Zone would be given national priority, but the special area in Tanjung Kelayang for the development of tourism was selected in its place, District head of Belitung Sahani Saleh pointed out.

"This is a new page in the history of the country. Finally, the industrial zone was inaugurated by the central government. We believe that the inauguration will encourage the industry here," he emphasized.

Meanwhile, Director of PT Billiton Plywood Franky Tjin noted that the company processed sengon into export-oriented plywood.

With a production capacity of one thousand to two thousand cubic each month, the company will increase its export capacity by 80 percent.

The raw material for the factory was sourced from farmers and community partners around Belitung.

"For now, our export market is China, with a value of US$300 per cubic," he stated.

Earlier, the BKPM had recorded investment commitments worth Rp206 trillion in January 2016, a year-on-year increase of 119 percent.

The BKPM chief noted that the increase reflected high investor confidence in conducting business in Indonesia.

"The investment climate is still good in general as indicated by the investment commitments and principle licenses that rose by 119 percent to reach Rp206 trillion. This is a good signal at the start of the year," Sibarani affirmed.

Investment commitments in January included Rp38 trillion in domestic investment (PMDN), or an increase of 261 percent, and Rp168 trillion in foreign investment (PMA), or an increase of 101 percent year-on-year.

Sibarani affirmed that one of the key drivers of investment commitments in January is political stability and favorable security conditions in the country.

He pointed to the quick handling of Januarys terror attack in Jakarta.

Other factors included the countrys success in managing positive economic growth, especially in the second half of 2015, and the focus, which was considered positive in terms of development as well as reform in the investment policy, he explained.

Simplification in the licensing procedures that enables to issue an investment license also contributed to the significant increase in investment commitments in January, he added.

Seven companies planning to invest a total of Rp31.8 trillion, or 15 percent of the total investment plans, used the three-hour licensing facility, he stated.

Singapore accounted for the largest share of the investment commitment, with investment plan of US$7.5 billion, followed by China accounting at US$2.6 billion, South Korea US$280 million, Japan US$132 million, and Malaysia US$105 million.

"Investment commitments by Singapore rose 413 percent year-on-year," Sibarani said.

A strong growth of 164 percent year-on-year, or Rp90 trillion, was recorded in investment commitments in the manufacturing sector in January.

"The manufacturing sector accounted for 43 percent of the total value of investment commitments," he added.

(A063/INE/B003)

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