The Investment Coordinating Board (BKPM) has managed to attract the interest of several new Japanese investors. One is interested in investing in the freight services to support the Sea Toll Road program.
This investment was discussed at a one-on-one meeting between BKPM Chief Franky Sibarani and the Japanese investor. During the meeting, the Japanese investor expressed an interest in investing IDR 365 billion in the shipment of freight from Surabaya to eastern Indonesia, including Papua.
Franky said he will facilitate this strategic investment. The Sea Toll Road program is aimed at facilitating the flow of goods, especially in Indonesia, he added. This would have a positive impact on the distribution of development across the nation.
“We hope to process this investment commitment this year so we can guide (the investor) in realising this investment,” said Franky in an official release to the media, Friday (10/6). (Read: Government to Issue Samurai Bond This Month)
The BKPM chief also received two other Japanese companies interested in investing in Indonesia. One of the companies, engaged in the sanitary napkin industry, wants to expand its business, while the other company wants to build an automotive component factory in Karawang.
“This investment interest in automotive components proves that Indonesia is on the right to track to becoming an automotive production base for Japan,” he said.
Franky’s visit to Japan was generate investor interest there, in follow up to the memorandum of understanding signed the BKPM and Bank of Tokyo Mitsubishi Tokyo UFJ (BTMU) in 2007. (Read: BKPM Nabs American Food Investor after DNI Revision)
During his visit, Franky explained the changes in Indonesia’s negative investment list to 67 potential investors in Fukuoka and 118 potential investors in Nagoya. On Friday (10/6), Franky will speak at the same forum before an audience of 566 in Tokyo. He is also scheduled to attend special meetings with potential Japanese investors.
BKPM records show that since 2010, Japan has been one of Indonesia’s main investors. The value of Japanese investment in Indonesia has amounted to US$16 billion since 2010.
These investments cover several sectors, such as the automotive, metal, machinery and electronics sectors. During the same period, Japanese investment commitment amounted toUS$45 billion, the largest portion earmarked for infrastructure sector. (Read Infographic: Foreigners Can Own 100 Percent)
The growth of Japanese investment is part of the nation’s 10 priority foreign investment markets. In 2015, Japan’s investment commitment grew 40 percent compared with average 29 percent growth in other foreign investment in Indonesia.
Meanwhile, Japan’s actual investment in Indonesia increased by six percent in 2015 compared with the figure for 2014. Japan’s actual investment amounted to US$2.87 billion, in 2,030 projects employing some 115,400 workers.
This year, the BKPM aims to achieve total actual investment of IDR 594.8 trillion, up 14.4 percent from last year. Foreign investment is targeted to reach IDR 386.4 trillion, up 12.6 percent. Japanese investments are expected to contribute significantly to achieving this target.