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City invites foreign investors
The Jakarta administration is offering several infrastructure projects to international investors, especially in transportation and waste management
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The Jakarta administration is offering several infrastructure projects to international investors, especially in transportation and waste management.
The city's bureau of capital investment and regional monetary management (BPM PKUD) held a one-day Jakarta Business Forum on Thursday. The forum attracted 125 business people from 14 countries, including Australia, the United States, Japan, Malaysia, Singapore and South Korea.
"Our goal is to improve efficiency and performance for our expenditures, diversify and optimize city spending as well as implement regional regulations and enforce them," bureau head Hasan Basri Saleh said.
The projects offered include six inner-city toll roads, five busway corridors, a mass-transit station and a subway.
The bureau has also opened up investment opportunities in waste processing, with plans to set up seven landfills. Jakarta produces about 6,000 tons of garbage per day, but operates only one dump, the one in Bantar Gebang, Bekasi.
Another project on offer, Marunda port, has several investors already expressing interest.
David Hughes from the Australia-based property and infrastructure company Crown Project said his company has plans to invest Rp 3 trillion (US$300 million) in the port project.
"We've had an initial briefing about the project. We're now waiting for the council to approve our proposal," he said.
Hary Soesetyo, the bureau's division head for planning and promotion, said the seaport had also attracted interest from a Rotterdam-based company.
Deputy Governor Prijanto said investors should not be reluctant to invest in Jakarta because the administration had cut much red tape.
He cited specific timeframes: Anyone who want to invest in the Marunda Bonded Zone only needed three days to process the paperwork; those investing in the trade and service sector required 10 days; smaller trade and industry projects, below 5,000 square meters, would be processed in 20 days; and larger ones, above 5,000 square meters, 38 days. Paperwork used to take 196 days.
The investment bureau also provides information on how to invest in Jakarta through www.jakarta-investment-center.com.
Brian O'Gallagher, Director of Trade and Development for Australia's Northern Territory, said he was impressed with the city's efforts to provide information.
"We can now see investment requirements through websites. I'm sure that will boost the investment rate," he said.
Australian businessman Nisin Sunito said the investment process was far easier this time around because requirements about business and investment had been openly conveyed.
"We can prepare the required documents. The process has been made faster and simpler," he said.
Jakarta has seen an increase in investments year-to-year. In 2007, total investments reached Rp 66 trillion, two-thirds from foreign direct investment and one-third from local sources.
As of May this year, Jakarta has lined up investments totaling Rp 63.53 trillion, already two-thirds of the 2008 investment target of Rp 96 trillion. Foreign direct investment represents most of the inputs, with only Rp 531.5 billion from local investment.
