Japan To Become FDI Source In 2016

Jakarta (Antara Bali) - The Head of Indonesia's Investment Coordinating Board (BKPM), Franky Sibarani stated that Japan will become a source of Foreign Direct Investment (FDI) in 2016.

To maintain a positive trend of such activities, BKPM officials plan to visit Tokyo, Japan, to promote investment cooperation with the local trade chambers.

"Japan will remain an investment 'fountain' in the FDI program, as it plans to enter Indonesia next year," Franky said.

Based on the investment record of BKPM, during the period of October 22, 2014 to December 4, 2015, Japanese investment interest was pegged at U.S.$11.4 billion. Japanese companies have already received principle permits of up to U.S.$5.7 billion.

During the planned visit to Japan, Franky plans to provide Japanese investors with information regarding Indonesia's investment policies, such as a three hour-investment license service, investment opportunities in various sectors, especially the priority like labor-intensive industry, infrastructures, and tourism.

"These three priority sectors are major contributors of Japanese investment," Franky noted, adding, that these sectors also include major investment categories developed by BKPM's marketing team.

The investment in the labor-intensive sector has reached U.S.$2.05 billion, the infrastructure sector is U.S.$700 million and regional tourism is U.S.$650 million.

"Japanese companies have received principle licenses, the commitment for investment in the infrastructure sector that has reached U.S.$4.6 billion and an intensive-work industry has risen to U.S.$607 million," he noted.

Franky is also scheduled to meet with Japanese banks in order to engage financing investment plans. Through the meetings, he expects mutual benefits and cooperation between both countries.

Japan is one of the main contributors for the realization of Indonesia's investment target. Data indicates that investment realization for the January to September 2015 period, released by BKPM, showed that Japan was placed third, with an investment of U.S.$2.5 billion in 1,318 Indonesian projects.

Japan is ranked below Singapore, which has invested U.S.$3.55 billion in 1,979 projects and Malaysia, which has invested U.S.$2.9 billion in 600 projects. (WDY)