US Investors Showing Renewed Interest in Indonesia


Ari Pramuditya, Fitri Novia Heriani
 

The Indonesia Investment Coordinating Board. Photo by: RES


US investors are showing a renewed interest in investing in Indonesia in the wake of President Joko Widodo’s visit to the country. US investment interest in Indonesia currently totals some USD 2.4 billion, while the creative sector has attracted some USD 40 million. Moreover, the pharmaceutical and electrical-power sectors are also proving attractive to Uncle Sam.
 
Head of the Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”), Franky Sibarani, stated this week that a meeting had already taken place with a prominent US company working in the pharmaceutical sector, during which interest was expressed in Indonesia. According to Mr. Sibarani, the US company ultimately wants to build a research and development facility in Indonesia.
 
In a press release received by hukumonline on Thursday, 29 October 2015, Mr. Sibarani expressed his delight at these positive developments, as well as at the current wave of US interest in Indonesia, which he identified as coming from the America-Europe (Amerop) Marketing Officer, as well as from IIPC New York.
 
The construction of research facilities and the development of pharmaceutical companies requires huge outlays of capital, however Mr. Sibarani has recommend that pharmaceutical industries looking to enter the Indonesian market should really be aiming to develop their own research and development facilities.
 
In addition to the pharmaceutical sector, a well-known US company working in the electrical-powersector is also showing an interest in investing in Indonesia, and an estimated possible investment of USD 1 billion has been tabled, which should come to fruition over a period of five years.
 
Azhar Lubis, acting as Deputy for the Control and Implementation of Investment, said that the US company in question is a pioneer in the electrical-power sector. "The investment value of USD 1 billion will flow not only into electrical-power generation, but also into the areas of health and the oil and gas sector," Mr. Lubis explained.
 
The BKPM’s meetings were carried out in parallel to the President's visit. Prior to these meetings, the President, alongside the Head of the BKPM and various associates, enjoyed a visit to the Brookings Institute. During the visit, President Widodo delivered a policy speech on issues relating to Islamic harmony and democracy, the resolution of the current haze crisis and illegal fishing. In addition, the president’s party also paid a visit to Capitol Hill for a meeting with US parliamentary leaders.
 
The President also witnessed the announcement and signing of various business deals between US companies and Indonesia. These deals are to be realized over the next five years and amount to a total of USD 2.4 billion. The sectors involved in the deals are the soft-drinks and soft-drinks distribution industries, the animal-feed and corn industries, the heavy-equipment parts and remanufacturing industries, electrical-power generation, and the coin minting and paper-money printing security industry.
 
According to the BKPM, the United States is one of the top-ten countries currently investing in Indonesia, and US investment realization during the January to September 2015 period amounted to USD 854 million. Prior to this, total US investment in Indonesia during the 2010 to September 2015 period amounted to USD 8 billion, placing the US third behind Singapore and Japan in terms of its investment in Indonesia.
 
(sp)

Ari Pramuditya, Fitri Novia Heriani
 

The Indonesia Investment Coordinating Board. Photo by: RES


US investors are showing a renewed interest in investing in Indonesia in the wake of President Joko Widodo’s visit to the country. US investment interest in Indonesia currently totals some USD 2.4 billion, while the creative sector has attracted some USD 40 million. Moreover, the pharmaceutical and electrical-power sectors are also proving attractive to Uncle Sam.
 
Head of the Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”), Franky Sibarani, stated this week that a meeting had already taken place with a prominent US company working in the pharmaceutical sector, during which interest was expressed in Indonesia. According to Mr. Sibarani, the US company ultimately wants to build a research and development facility in Indonesia.
 
In a press release received by hukumonline on Thursday, 29 October 2015, Mr. Sibarani expressed his delight at these positive developments, as well as at the current wave of US interest in Indonesia, which he identified as coming from the America-Europe (Amerop) Marketing Officer, as well as from IIPC New York.
 
The construction of research facilities and the development of pharmaceutical companies requires huge outlays of capital, however Mr. Sibarani has recommend that pharmaceutical industries looking to enter the Indonesian market should really be aiming to develop their own research and development facilities.
 
In addition to the pharmaceutical sector, a well-known US company working in the electrical-powersector is also showing an interest in investing in Indonesia, and an estimated possible investment of USD 1 billion has been tabled, which should come to fruition over a period of five years.
 
Azhar Lubis, acting as Deputy for the Control and Implementation of Investment, said that the US company in question is a pioneer in the electrical-power sector. "The investment value of USD 1 billion will flow not only into electrical-power generation, but also into the areas of health and the oil and gas sector," Mr. Lubis explained.
 
The BKPM’s meetings were carried out in parallel to the President's visit. Prior to these meetings, the President, alongside the Head of the BKPM and various associates, enjoyed a visit to the Brookings Institute. During the visit, President Widodo delivered a policy speech on issues relating to Islamic harmony and democracy, the resolution of the current haze crisis and illegal fishing. In addition, the president’s party also paid a visit to Capitol Hill for a meeting with US parliamentary leaders.
 
The President also witnessed the announcement and signing of various business deals between US companies and Indonesia. These deals are to be realized over the next five years and amount to a total of USD 2.4 billion. The sectors involved in the deals are the soft-drinks and soft-drinks distribution industries, the animal-feed and corn industries, the heavy-equipment parts and remanufacturing industries, electrical-power generation, and the coin minting and paper-money printing security industry.
 
According to the BKPM, the United States is one of the top-ten countries currently investing in Indonesia, and US investment realization during the January to September 2015 period amounted to USD 854 million. Prior to this, total US investment in Indonesia during the 2010 to September 2015 period amounted to USD 8 billion, placing the US third behind Singapore and Japan in terms of its investment in Indonesia.
 
(sp)
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