Domestic Investments Decline By 54 Percent
Tuesday, 25 November, 2008 | 18:39 WIB

TEMPO Interactive, Surakarta:Domestic investments up to September 2008 has declined by 54 percent compared to last year. The government is urging public agencies providing services to investors to improve their performance.

Investments Coordination Board deputy chief, Yus'an, said the total domestic investment up to September only reached Rp 14,98 trillion. The total human resources absorbed were 5.342 people.

According to Yus'an, investment activities in Indonesia were helped up by the influx of foreign capital. During the period of January – September, the total foreign capital coming into Indonesia was 61.4 percent. "The total investments were Rp 139 trillion," he said yesterday. Foreign investment enabled new job opportunities for 200.712 people.

The island of Java , Yus'an said, remains the preferred location for new investments in Indonesia. This has caused an imbalance in the development of Indonesia's other island. He said that to attract investors, local administrations outside the Java must improve their performance, particularly in facilitating investment licensing process. Other areas outside Java that are attracting investors are Riau, South Sumatra and North Sumatra.


AHMAD RAFIQ