"The BKPM has originally planned to set up four IIPCs in India, China, Germany, and South Korea. But because of the budget cut we will only open it in South Korea," BKPM chief Chatib Basri said following a hearing with the House of Representatives` Commission VI at the parliament building here on Wednesday.
At the meeting, the House Commission VI agreed to a cut in the agency`s budget by Rp53.015 billion to Rp652.088 billion under the revised 2013 state budget.
The government has decided to cut the ministries` and government institutions` budgets by about Rp24 trillion to maintain a budget deficit at 2.48 percent this year.
Chatib who is also the finance minister said the budget reduction will not affect the BKPM`s programs very much.
"Yet the budget cut will reduce the BKPM`s optimism about achieving the investment target of Rp390 trillion for 2013," he said.
To date, Indonesia has opened IIPCs in New York, Tokyo, Sydney, London, Singapore and Dubai.
Chatib said foreign investment inflows from Germany, India and China to Indonesia are relatively small.
Germany is active in raising their investment in Indonesia only after President Susilo Bambang Yudhoyono visited the European country some time ago, he said.
Therefore, he added the BKPM has decided to prioritize the opening of an IIPC in South Korea, which is the third biggest investor in Indonesia.
Reporting by Royke Sinaga
(S012/H-YH)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
