Indonesia`s first semester investment up to Rp65.27 trillion

Surabaya, E Java (ANTARA News) - The Indonesian government licenced foreign and domestic investment projects worth Rp65.27 trillion in the first semester of 2007, up 52.60 percent from the same period last year, an official said.

"Of the total, Rp36.9 trillion (US$4.1 billion) came from foreign investment and the rest from domestic investment," Head of the Investment Coordinating Board (BKPM) Mohammad Lutfi said in an investment seminar here Tuesday.

The investment in the second semester of 2007 far exceeded the BKPM-set target of Rp41.54 trillion for the period, he said.

The BKPM had set itself the target of attracting domestic investment worth Rp11.58 trillion and foreign investment worth Rp29.96 for the first half of 2007.

Data from the BKPM show paper, paper-related and printing industries topped the list of domestic investment projects with Rp14.16 trillion, followed by metal, machinery and electronic industries, food industries, plantation and construction sectors.

Meanwhile, basic chemical, chemical goods and pharmaceutical industries were listed as the biggest source of foreign investment with US$1.526 billion, followed by paper, paper-related and printing industries, food industries, mining and trade sectors.

West Java remained the biggest recipient of domestic investment with Rp10.353 trillion, while East Java was the most-preferred foreign investment destination with US$1.567 billion.

"The foreign investment mostly came from Britain, Taiwan, Singapore, Japan and South Korea," Lutfi said.

He said the government continued to encourage investment inflows by easing investment policies.

"The government is committed to overcoming unemployment and poverty. One of the efforts is encouraging investment to creare more jobs," he said.

He said the government aimed to attract US$426 billion in investment in 2009 to achieve an economic growth rate of 6.6 percent.