ID :
36396
Thu, 12/18/2008 - 23:06
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https://www.oananews.org//node/36396
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GOVT EXPECTING INCREASED REALIZATION OF MIDDLE EASTERN INVESTMENT
Jakarta, Dec 18 (ANTARA) - The Indonesian government expects Middle Eastern investors to keep on increasing the realization of their investment plans in the country so as to move the domestic economy.
"Until August 2008, Middle East countries received windfall profits from the world crude price hikes. We hope it will trickle down in the country," the head of the Capital Investment Coordinating Board (BKPM), Muhammad Lutfi, said here on Thursday.
He said the windfall profits Middle Eastern countries had enjoyed could amount to US$1.6 trillion. "With funds in that amount, I think, they will seek new investment opportunities, especially in Indonesia's agro-industry, banking and telecommunication sectors," he said.
He said the Indonesian government however was aware that in attracting them it had to improve its bureaucratic system such as the taxation system upon which Indonesia and the Middle East investors had not yet reached an agreement.
He admitted he did not know Indonesia's ranking on the Middle East investors' list of investment destinations.
"What is certain is that Qatar Telecom has come to buy Indosat shares and Emaar Group investing in a hotel business worth US$600 million and planning to put no less than US$2.5 billion into the country in the next six years to come," he said.
Lufti said Indonesia and Myanmar were potential to attract Middle East investors especially in the agro-industrial sector. But because of political conflicts in Myanmar the country's chance to get the investment is greater, he said.
He said Malaysia and Singapore actually were quite successful in attracting invesment from the Middle East but the Middle East investors still liked to do business in the sector they already recognized including the telecommunications and aviation sectors.
In view of that he said the government had to immediately improve the investment system especially with regard to the implementation of a shariah system and a non-interest investment tax system.
House Commission VI chairman Toto Daryanto meanwhile called on the government to ease investment rules for the Middle East investors.
Unless it moved fast the Indonesian government would lose because right now the Middle East investors were just having excess liquidity while Indonesia was needing aid from international financial institutions to support its economy.
"We are urging the government to ease entry of Middle East investors. Do not differentiate foreign investors," he said.
Lutfi said next year's investment growth would positively be lower than this year because of the current global crisis.
He predicted the growth would still be double-digit between 10.7 and 11.2 percent or a bit lower than this year.
"In 2008 investment realization reached US$16.5 billin or grew 19 percent compared to 2007. It was another record after a record growth in 2007," he said.
Lutfi said US investment in the country in the past five years meanwhile was no longer included in the big five because much of them had gone to other countries. However the situation did not have much impact on the country, he said.
"Until August 2008, Middle East countries received windfall profits from the world crude price hikes. We hope it will trickle down in the country," the head of the Capital Investment Coordinating Board (BKPM), Muhammad Lutfi, said here on Thursday.
He said the windfall profits Middle Eastern countries had enjoyed could amount to US$1.6 trillion. "With funds in that amount, I think, they will seek new investment opportunities, especially in Indonesia's agro-industry, banking and telecommunication sectors," he said.
He said the Indonesian government however was aware that in attracting them it had to improve its bureaucratic system such as the taxation system upon which Indonesia and the Middle East investors had not yet reached an agreement.
He admitted he did not know Indonesia's ranking on the Middle East investors' list of investment destinations.
"What is certain is that Qatar Telecom has come to buy Indosat shares and Emaar Group investing in a hotel business worth US$600 million and planning to put no less than US$2.5 billion into the country in the next six years to come," he said.
Lufti said Indonesia and Myanmar were potential to attract Middle East investors especially in the agro-industrial sector. But because of political conflicts in Myanmar the country's chance to get the investment is greater, he said.
He said Malaysia and Singapore actually were quite successful in attracting invesment from the Middle East but the Middle East investors still liked to do business in the sector they already recognized including the telecommunications and aviation sectors.
In view of that he said the government had to immediately improve the investment system especially with regard to the implementation of a shariah system and a non-interest investment tax system.
House Commission VI chairman Toto Daryanto meanwhile called on the government to ease investment rules for the Middle East investors.
Unless it moved fast the Indonesian government would lose because right now the Middle East investors were just having excess liquidity while Indonesia was needing aid from international financial institutions to support its economy.
"We are urging the government to ease entry of Middle East investors. Do not differentiate foreign investors," he said.
Lutfi said next year's investment growth would positively be lower than this year because of the current global crisis.
He predicted the growth would still be double-digit between 10.7 and 11.2 percent or a bit lower than this year.
"In 2008 investment realization reached US$16.5 billin or grew 19 percent compared to 2007. It was another record after a record growth in 2007," he said.
Lutfi said US investment in the country in the past five years meanwhile was no longer included in the big five because much of them had gone to other countries. However the situation did not have much impact on the country, he said.
