Govt believes foreign investment will revive in 2007

Jakarta (Antara News) - Indonesian Trade Minister Mari Elka Pangestu said here on Thursday she predicted that foreign investment in Indonesia would recover next year following improvement in the country`s investment climate and economic cooperation agreements with various countries.

"According to me the improvement in foreign investment is reflected in a World Bank survey on the cost of doing business which shows an improvement. While they have not yet finished, improvement efforts are still being made by the government in stages and hopefully would produce results in 2007," he said.

The minister said the drop in Japanese and Chinese investment recorded by the Capital Investment Coordinating Board (BKPM) from January to November this year did not totally reflect investment in Indonesia.

Japanese investement in Indonesia in the period dropped by 61.13 percent to US$430.2 million from US$1.106 billion in the previous period.

Chinese investment meanwhile dropped by 43.22 percent to US$1144.8 million from US$202.2 million in the previous period.

The minister admitted there were problems such as infrastructure obstacles hindering efforts to lure foreign investors.

She said she was still optimistic Indonesia could attract Japanese investors following a switch in Japanese investment destination from China to Southeast Asia in the past year. (*)
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