"Japanese investments in Indonesia have so far been in the automotive and electronic sectors. We wish it can be expanded. We have a lot of crude palm oil and rubber. We propose to explore whether these commodities can be linked with the tire industry in Japan," the head of Investment Coordinating Board (BKPM), Franky Sibarani, said here on Monday after signing a memorandum of understanding with Jetro on the promotion of investments.
He noted he has proposed Japanese investors to utilize Indonesias seaweed potential for seaweed processing industries in Japan.
According to him, it is important to expand and promote Japanese investments in Indonesia because Japan has so far been the largest investor in the country.
"Japanese and Indonesian potentials are equally significant because there are a lot of other businesses besides automotive and electronics in Japan that can be expanded to Indonesia, while Indonesia has abundant natural resources to offer," he explained.
Referring to the maritime sector, Sibarani remarked many Japanese investors have expressed interest to develop canned fish and ship building industries in Indonesia.
Many Japanese investors, including a sorbitol producer, have also expressed interest in the animal husbandry and agriculture sectors, he pointed out.
Sibarani believes Japanese investment in Indonesia will recover to reach a high rank similar to that of two years ago.
"Japanese investment trend in 2013 was still high, but it declined in 2014 after it became stagnant. We believe that in the next two years, Indonesia will emerge as one of Japans favorite countries for investment, after Singapore," he observed.
According to him, after Singapore and Thailand, Indonesia has so far been the third largest investment destination of Japanese investors in the ASEAN region.
The total realization of Japanese investment in Indonesia from January to October 2014 was recorded at US$3.7 billion, he said, adding that it was US$1.5 billion from November 2014 to February 2015.
The signing of the MOU between the BKPM and Jetro has been part of an agenda of President Joko Widodos visits to Japan, China, and Malaysia from March 22-28.(*)
Editor: Heru Purwanto
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