AUTOMOTIVE, TEXTILE, FOOTWEAR INDUSTRIES ARE MOST COMPETITIVE SECTORS

Jakarta, May 29 (ANTARA) - Chief of the Investment Coordinating Board (BKPM) M Lutfi said automotive, textile and footwear industries are the most competitive sectors in the country this year amidst the global economic slowdown.

"The three most competitive sectors are automotive, textile and footwear industries. Let's see under the current financial crisis the automotive industry still has a chance to grow," he said on the sidelines of the launch of Volkswagen (VW) Touran here on Thursday.

He predicted investment inflows in 2009 would fall to US$300 billion from US$480 billion in 2008 and from US$520 billion in 2007.

But the growth of the three industrial sectors suggested that the investment climate in the country was not as bad as the global economic condition, he said.

The presence of German investor in the automotive industry would encourage an inflow of foreign investments from at least 20 supporting industries into the country, he said.

Citing an example, he said, German electronic producer Bosch last year unveiled a plan to invest up to US$40 million in the country. "They begin constructing their plant now," he said.

In addition, a foreign investor also planned to build a nickel smelting plant at a cost of US$4.2 million in the country, he said.