Source: Wire. Date: 24 Dec 90. Story Type: News. Original
Language: English. Dateline: Jakarta. Byline: None. Text: Full.
Brief Remark: None.
FOREIGN INVESTMENT SOARS TO $8.7 BILLION IN INDONESIA
Foreign investment in Indonesia in 1990 soared to an all-time
record of 8.7 billion dollars, largely in response to the
government's deregulatory measures of recent years, officials
announced Monday.
The figure of foreign investment approvals represented an 85
per cent increase over last year's 4.7 billion dollars, a record
at the time.
"It's been a very good year for investment in Indonesia," said
Sanyoto Sastrowardoyo, chairman of the Capital Investment
Coordinating Board (BKPM) which licenses domestic and foreign
investment outside the oil, gas, banking, leasing, and insurance
sectors.
Of the 8.7 billion dollar of foreign investment approved, 1.98
billion was for the chemical industry, 1.09 billion for the
textile and garment sector and 826 million dollars for the hotel
industry, Mr. Sanyoto said.
Indonesian investment regulations require foreign investors to
form joint ventures with Indonesian companies, to limit their
equity holding to a maximum 80 per cent, and to divest their
shares to give the local partners a controlling majority after 15
years of commercial operation.
Japan topped the list in terms of value with 75 projects worth
2.23 billion dollars approved, followed by Hong Kong with 36
projects worth 993 million dollars, according to BKPM.
South Korea ranked third with investment of 721 million dollars
for 85 projects and Taiwan fourth with 616 million dollars for 93
projects.