Fifty-nine of the 200 investors applying for a newly launched direct construction investment incentive (KLIK) have completed construction of their plants and are ready for production, the government said on Wednesday.

They wield a combined Rp 108 trillion (US$8 billion) worth of investment in various sectors, including food, chemicals and pharmaceuticals, hotels and restaurants, power plants, rubber and metal and machinery, said Investment Coordinating Board (BKPM) chief Franky Sibarani.

The investors are entitled to a scheme allowing them to start building their factories and related facilities without having to wait for the issuance of building permits and environmental assessment documents.

'€œWe'€™re committed to innovating our programs to woo more investors and reduce barriers, such as by cutting red tape,'€ Franky told journalists, adding that the board had set an investment target of Rp 594.8 trillion this year.

The new scheme is offered to investors with starting investment of at least Rp 100 billion and employing at least 1,000 local workers. Franky said the 59 projects were expected to contribute $7.1 billion to state income from exports, save a further $453 million in imports and create 14,679 jobs.

Of the 59 investors, 46 are foreign investors and the remaining 33 domestic. By country of origin, Singapore tops the list with 12 projects worth Rp 19.59 trillion, followed by Japan with Rp 13.2 trillion, the UK with Rp 7.2 trillion, Thailand with 4.1 trillion and South Korea with 3.7 trillion.

Franky added that the other 141 projects were still under construction and expected to be completed this year. Accumulatively, he said, they were expected to contribute $8.1 billion in exports and replace imports worth $181 million. (sha/ags)(+)

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