Flooded Automotive Industry Investment

Jakarta - The development of automotive industry in Indonesia turned out to attract the attention of domestic and foreign investors. Deputy Head of Investment Services Investment Coordinating Board, Teuku Otman Rashid, recorded at least 18 investors have submitted license applications for capital investment.

"We have received applications for capital investment and has issued a registration or permit the principles of capital investment to the investors," Othman said in Jakarta on Tuesday (11/01).

Of the 18 investors, said Otman, five of them the status of applicants for capital investment. While 13 other investors have followed for permission principle. The five investors came from the United States, Thailand, Malaysia, Singapore, and Japan. Value of the largest investment came from Thailand, which is the component industry and invest U.S. $ 1.5 million in Bekasi.

The 13 other investors have filed consent principle. As for domestic investors engaged in the business of spare parts and components for motorcycles and four will invest Rp 43.1 billion at the Bekasi, West Java. Otman expect this investment to strengthen the development of the domestic automotive industry.

Special Staff Head of BKPM, Silmy Karim, said, from about U.S. $ 448 million investment fund last year, a total of U.S. $ 32 million came from domestic investment. "That's just for the automotive industry," he said. This year BKPM targeting investments in all sectors rose 15 percent compared to last year, reaching Rp 200 trillion.

Earlier, Chairman of Indonesian Chamber of Commerce and Industry Bambang Suryo Sulisto assess the automotive industry will remain a mainstay of this year. Although the government plans to restrict the consumption of subsidized fuel oil, applying progressive taxes, and raise local taxes, Suryo assess the attractiveness of investment in the automotive industry remains high because the market potential is still large.