Regions to offer US$8 billion worth of projects in next investment forum

Novia D. Rulistia, The Jakarta Post, Jakarta | Fri, 04/25/2008 12:16 AM

More than 66 regencies have committed to offering a total of 200 projects worth US$6 to $8 billion to investors at next month's Indonesian Regional Investment Forum, says the forum organizer.

"The projects are mostly in the agribusiness, infrastructure, mining and tourism sectors, as we and the Regional Representatives Council (DPD) have agreed to focus on these sectors," Global Initiatives CFO Sydney Yeung said in an interview Thursday.

The total value of the projects submitted by the regencies has exceeded the minimum target of this year's forum at $6 billion.

"The event is still a month away, but we have identified at least 45 interested foreign investors which are suitable for the projects," Yeung said.

He said the interested investors were from investment banks, private equity funds and security firms from, among other places, the United States, the United Kingdom, China, Hong Kong and the United Arab Emirates.

The forum hopes to attract more than 500 investors, including at least 70 foreign investors, who will channel funds to provinces, cities and regencies.

The Indonesian Regional Investment Forum, the second of its kind, will take place May 26 and 27.

Each region hoping to take part in the forum must first present three or more feasible projects with a total investment need of at least $50 million.

Yeung said the organizer would monitor the progress of deals long after the conclusion of the forum, so as to measure the success of the event.

"Through this forum, we want to ensure that the money and the projects are real, by keeping an eye on the projects for at least 12 months after the forum ends," he said.

Yeung said that in addition to help stimulate regional economies, the forum would also promote regulations related to direct investment.

"The government should inform investors of the regulations in all the sectors that we're focusing on. The regulations need to be explained and updated, which areas investors can enter and which they can't," he said.

"It all needs to be clarified in order to protect investors and keep them investing here."

The Investment Coordinating Board said direct investment in the country rose by 86 percent in the first quarter of this year to $8.33 billion from $4.48 billion in the same period last year.