REPUBLIKA.CO.ID, TOKTO -- Vice President Jusuf Kalla, who is on a visit to Japan, asked Japanese companies to increase investment in Indonesia.
"We discussed wide ranging issue such as increase in investment in Indonesia," Kalla said here on Monday.
Kalla has met with leaders of a number of Japanese companies such as Itochi, Marubeni, Mitsubishi, Nomura, dan Sumitomo as well as leaders of the Keidanren.
In 2014, Itochu was reported to team up with Thailand's Charoen Pokphand (CP) planning to invest US$8 billion in a China's CITIC Group in 2015.
It would be the largest investment by Itochu outside Japan and the largest acquisition in China by a Japanese company.
Indonesian Ambassador to Japan Yusron Ihza Mahendra said the Japanese companies raised issues such as land clearing, working permit that are potential to hamper investment.
Earlier Kalla said interest of Japanese investors in doing business in Indonesia grew taking advantage of the falling value of rupiah.
Currently more Japanese companies want to invest in southeast Asia including Indonesia.
Earlier Industry Minister Saleh Husin asked a group of top Japanese business leaders in Tokyo to boost export oriented investment in Indonesia.
Husin pointed to plan by Yamaha to increase its production of 250 cc R25 motorcycles in Indonesia for exports to America, Europe and Japan.
He said Mitsui, which has been doing business in Indonesia for almost 100 years, will continue investment in the country by building Jakarta;'s Mass Rapid Transit (MRT) project and to expand Tanjung Priok port.
Husin and a number of Indonesian officials including chairman of Investment Coordinating Board (BKPM) Franky Sibarani, and the vice president's chief economic adviser Sofjan Wanandi are in Tokyo to accompany Jusuf Kalla.
"I hope Japanese investors would continue expanding their production capacity and contribute to increasing Indonesia's exports," he said.
In the first nine months of 2014, new Japanese investments in the country were valued at US$2.04 billion placing Japan second to Singapore as the biggest foreign investing countries in Indonesia during that period.
Largest Japanese investment sin the country are in the automotive , transport equipment and metal industries worth US$880.6 million and in machinery and electronic industry valued at US$384.5 million .
Husin sought to convince the Japanese business leader that the Indonesian government would continue to improve the business and investment climate in the country such as by simplifying the licensing procedure through 'One Stop Service' at BKPM.
The largest economy in Southeast Asia is set to chalk up a significant economic growth with its per capita GDP expe3cted to quadruple in 2020.
For Japanese business leaders, Indonesia is one of the most potential investment destinations in the world.
Many Japanese investors in the country plan expansion of business to a number of southeast Asian countries mainly Indonesia, Husin said.
According to an ASEAN Business Outlook Survey 2014, Indonesia is the most attractive place for business expansion in the region followed by Vietnam and Thailand.
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