REPUBLIKA.CO.ID, JAKARTA -- Indonesia is hoping for more investment from Japan after the scheduled meeting between President Joko Widodo and Japan's Prime Minister Shinzo Abe. This was said by Thomas Lembong, the chief of the Indonesian Investment Coordinating Board (BKPM), here on Friday.
Shinzo Abe is scheduled to arrive in Indonesia for a two-day state visit on Sunday and Monday. The BKPM chief said Japan has so far been the country's second biggest investor, focusing mainly on the infrastructure sector. "Projects such as power plants and Jakarta's mass rapid transport system are funded by Japanese investment. In terms of investment, Japan is indeed one of our important clients," he said in a press statement.
Thomas Lembong said investment relations between the two countries have so far been going very well. "I think the Japanese premier's visit will be good for us. I also visited Japan five weeks ago and met with Japanese representatives from their chamber of commerce as well as many investors. Both countries have close relations. Japan has been an investor in Indonesia for decades now, and has been the second or the third biggest investor in the country," he added.
He stressed that Japanese investors have been involved in many infrastructure projects in 2016, such as power plants and the Surabaya-Sorong sea toll road project, both operational now.
In 2017, Japanese investors plan to also invest in the real estate and property sectors. "Discussions have been also on about starting a medium-express train service from Jakarta to Surabaya in East Java and Japan seems interested in it. A Patimban port development project located towards the east of Jakarta and close to the automotive industrial cluster is also on the anvil. All Japanese automotive industries are there. If a big port is available there, it will make our automotive exports more efficient. The Patimban project will also be funded by the Japanese investment," he revealed.
Saribua Siahaan, the BKPM Japan investment promotion official, explained that a Japanese company operating in the property sector is cooperating with a local partner to realize its plan to develop housing projects across Indonesia. The low-cost residential development program will cater to low-income people and will match the government's one-million houses development program.
He pointed out that Japanese investors entering the real estate and property sectors will have different market targets. "Some plan to carry out property development particularly catering to expatriates and middle-class and higher strata, while others target workers in industrial zones. Right now, we are still coordinating with the BKPM office in Jakarta to facilitate a big Japanese group that has signed an agreement with a housing company in Indonesia," he informed.
Besides discussing investment in the manufacturing sector, Japanese Prime Minister Abe would also discuss investment in the Indonesian government's other prioritized sectors. PM Abe plans to bring along a number of executives from companies wishing to invest in Indonesia.
Based on BKPM data, Japan had invested US$1.6 billion in 425 projects until the third quarter in 2016 to make it the second biggest investor in Indonesia. This was a significant increase from US$917.27 million in 399 projects in the same period in 2015. Cumulatively, from January to September 2016, Japan's total investment realization had reached US$4.4 billion.
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