Banten awaits results from investment forum

Aditya Suharmoko , The Jakarta Post , Jakarta | Wed, 05/28/2008 12:56 PM | Business

Domestic and foreign investors have expressed interest in the development of several projects in Banten province valued at US$5 billion, an official says.

Of 35 participating regions at the Indonesian Regional Investment Forum (IRIF), Banten province offered projects with the highest investment value, a fact not missed by investors, said Banten Investment Coordinating Board head Eneng Nurcahyati.

She told The Jakarta Post on Tuesday that International Enterprise Singapore was interested in financing the development of a $4 billion Bojonegara oil refinery, a $792.2 million Bojonegara international port and an agribusiness terminal costing $4.37 million.

The two-day forum concluded Tuesday in Jakarta.

Another Singaporean company, Ramky International Singapore, expressed interest in establishing a waste management industry in the area as "Banten has many chemical and heavy industries", said Eneng.

"The Singaporean companies will visit the sites tomorrow (Wednesday) for further negotiation."

She also said local companies PT Tirta Cisadane and PT BaratJaya Sentosa Perkasa were looking to be involved in the construction of the Karian dam and water supply project costing $319,000.

The 2008 IRIF offered regions a chance to meet investors in an aim to spur economic growth and job creation here. At least 200 projects valued at $18.9 billion in the agribusiness, infrastructure, mining and energy, property and tourism sector were offered.

The Regional Representatives Council (DPD), which initiated the forum, said investors were following up on at least 62 projects offered.

The forum aimed to attract between $6 billion and $8 billion in investment deals, up from $6 billion secured in the first IRIF held in 2006.

Australian-based Consolidated Rutile Limited has explored the possibility of investing in bauxite and zircon mines in Kalimantan, said DPD Secretary-General Siti Nurbaya Bakar.

She did not mention the cost of the projects.

Indonesia-India Investment Federation chairman Fakir Chand Dhillon said that through the forum foreign investors could learn about business prospects in the regions.

However, Fakir said the language difference between foreign investors and local government officials had been a barrier.

A director of Chinese investment bank SinoNova Holdings Limited, John Barbera, complained he could not meet local government officials "who really know about the projects" at the forum.

"After two days, it is a little frustrating to go back and not have any opportunity to invest your money," Barbera said.

Siti said she was aware of the problem -- investors having a hard time with public relations and marketing representatives who did not understand the projects well -- and would address it in the next IRIF.

"Many regions did not send their top officials, making it hard for investors to learn about the projects," said Siti, adding that regions should have been proactive if they wanted to attract investment.

Leading business and corporate strategist Kenichi Ohmae said regional marketing was a crucial factor for Indonesia to attract investment.

Ohmae said Indonesia could be as successful as Brazil, India, China and Russia if it developed the regions' potential.

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