Almost 95 Percent Of Japanese Investments In In Java

Jakarta (Antara Bali) - Almost all or 94.8 percent of Japanese direct investments valued at US$14.2 billion in Indonesia in the period of 2010-2015 were in Java.

Head of the Capital Investment Coordinating Board (BKPM) Franky Sibarani said in a written statement, said the choice of location was based mainly on the investment sectors .

The Japanese have invested mainly in the manufacturing sector, which has contributed much to the process of industrialization in the country, Franky said.

Around 87 percent of the Japanese investment projects  in the 2010-2015 period were in the manufacturing industry, he said here  on Monday.  

He said the transport sector dominated Japanese investment accounting for US$7.5 billion of their total direct investment in the country  in 2020-2015.

Other main sectors entered by Japanese investors are metal , machinery and electronic, chemical,pharmaceutical, industrial estate, office buildings and food processing industries.

"There are still wide room for Japanese investment in the manufacturing sector in Indonesia such as upstream oil and gas, chemical, rubber  and telecommunication equipment industries ," Franky said.

He said currently Japanese investors began to diversify their business areas with expansion to housing  and industrial estate development.;

Japanese investment in the two sectors surged 700 percent  to US$519 million in 2015  from only US$71 million  in the previous year.

He predicted that the position of Japan as one of the largest investing foreign countries in Indonesia  would  be stronger.

"With investment of US$14.9 billion , Japan contributed 10.2 percent to the total value of  foreign investments in the country in 2010-2015," he said.

Based on data at BKPM, Japanese investment have tended to increase  in the country in the past six years.

In  2010, Japanese investments were valued at US$713 million , The investment value shot up to US$1.5 billion in 2011  and up again to US$2.3 billion in 2012  and to a peak of US$4.7 billion in 2013.

In 2014, the Japanese investment dropped to US$2.7 billion in 2014, before rising again to US$2.8 billion in 2015.  
In the period of 2010-2015, Japan was second in investment value after Singapore which had investments valued at US$31 billion.  

The United States  was in third place with investment valued at US$8.2 billion , followed by South Korea with investment of US$8 billion and Malaysia  US$7.1 billion. (WDY)