Foreign Investment Down
Foreign investment (FDI) during the year 2004 decreased compared to 2003. Actual foreign investment in accordance with fixed business license in 2004 only U.S. $ 4.6 billion, or around Rp 41.4 trillion, while in 2003 reached U.S. $ 5.4 billion (Rp 48.6 trillion). Investment Coordinating Board (BKPM) Theo F. Tumion said the decline was believed to be due to the party elections, which lasted almost throughout 2004. “Investors took a wait,” he said. Foreign investment is able to absorb labor force 130 131 people.
Fortunately, the value of investments financed by domestic investors increased. In 2003, domestic investment (PMDN) reached Rp 11.5 trillion, and in 2004 rose to Rp 15.2 trillion. Investments amounted to 46 300 people were absorbing the labor force. Only, the actual investment is still far from the previously targeted investment plan. “Domestic Investment in 2004 is targeted at Rp 36.8 trillion. While the PMA Rp 10.3 trillion,” said Theo.