Two construction companies from Japan have expressed interest in investing in Indonesia with a value of Rp 4 trillion. These investors consist of two construction companies with an investment value of up to Rp 3.5 trillion, as well as in the building depot business with an investment plan of Rp 500 billion.
The Head of the Investment Coordinating Board (BKPM), Franky Sibarani, said that the two companies were serious about investing, because they were ready for a joint venture with the local partner he chose.
“The company plans to participate in two existing infrastructure projects in Indonesia worth Rp 2.5 trillion. In addition, the company also plans to build apartments in the Jabodetabek area with an investment of up to Rp 1 trillion,” Franky explained, in his statement, Friday (20/20). 5/2016).
Franky conveyed, apart from the interest of related construction companies, a company engaged in the home improvement sector stated that they wanted to build a building depot that provides building equipment for construction distributors. For this business, the company needs 2,000 square meters of land with a planned investment value of Rp 500 billion.
“For home improvement companies, they plan to build a building depot with a land area of 2,000 square meters in accordance with DNI provisions. They are serious about investing in Indonesia, especially after learning about the online PTSP system,” Franky explained.
Furthermore, Franky added that investors see Indonesia as a potential market. Especially with the existence of the ASEAN Economic Community, providing enormous business opportunities for investors to realize their investment interests.
“Currently there are several projects that the company has under way, such as LNG in Donggi Sulawesi. Seeing the huge business opportunities, in the long term, the contractor company has plans to build a Javanese Building in Indonesia,” continued Franky.
Meanwhile, the Investment Promotion Officer of the Tokyo BKPM (IIPC) representative office, Saribua Siahaan, stated his readiness to facilitate and oversee government priority projects, so that Japanese investors can realize their investment interests quickly and in accordance with the company’s targets. “The interest of investors in Japan to invest in Indonesia is quite large. Therefore, we are ready to facilitate the needs of investors and guard their investment realization process, especially for government priority projects,” said Saribua.
Based on BKPM data, Japanese investment realization in Indonesia in 2015 increased by 6{eaf9237eaacfc235382410c03b502b45a3b50d7c4b5d825b2e472ff5b8882d38} compared to 2014. Japanese investment realization in 2015 was recorded at US $ 2.87 billion, with a total of 2,030 projects and absorbing 115,400 workers. The main contribution of Japanese investment is still dominated by the manufacturing sector, particularly the automotive, electronics and machinery sectors, as well as the chemical and pharmaceutical sectors.
In the first quarter of 2016, Japanese investment in Indonesia was recorded at US $ 1.58 billion, consisting of 427 projects and absorbing 28,377 workers. Japan is in second place on the list of investment source countries in Indonesia. Japan is under Singapore and above Hong Kong, China and the Netherlands.