REPUBLIKA.CO.ID, JAKARTA -- The United States is interested in investing US$40 million, or Rp500 billion, in Indonesia's creative economy sector after President Joko Widodo's (Jokowi's) visit to Washington this week, according to the Investment Coordination Board (BKPM).
BKPM Head Franky Sibarani noted in a press statement released here on Wednesday that the United States had expressed interest in making an investment during a one-one-one meeting held on the sidelines of the Investment Summit in Washington.
"The United States' interest in investing US$40 million is not part of the business deal worth US$2.4 billion agreed earlier and announced by the government. Companies doing business in the creative economy sector from the United States attended the one-on-one meeting and expressed interest to invest US$40 million in this sector in Indonesia," he remarked.
Sibarani explained that companies from the creative economy sector were actively involved in digital and entertainment innovations.
"This is just the start and is a positive step in our efforts to diversify investment from the United States in various sectors as the country has so far mostly invested in Indonesia's mining sector," the BKPM chief pointed out.
Besides the creative economy sector, Sibarani revealed that his side had also met two manufacturing companies from the United States, which would officiate their factories in Karawang, West Java, in March 2016.
"We also met the representatives of a heavy equipment company, which has just obtained a principle business license for a manufacturing firm in Cileungsi, Bogor, West Java. This marks their investment commitment worth US$12 million in Indonesia. However, this one has been included in the US$2.4 billion investment registered earlier," he affirmed.
It was earlier reported that investment plans of the United States worth US$2.4 billion, or Rp32.7 trillion, were concluded during President Jokowi's visit to Washington this week.
Sibarani noted in a press statement released in Jakarta on Tuesday that one billion of the total pledged investment will be channeled to the food, beverage, and tobacco sectors.
The other investment projects were US$600 million for electricity development, US$750 million for the downstream agro industry, and US$12 million for the heavy equipment and machinery industry.
"The US$2.4 billion investment plan, which has been identified by the BKPM, is part of the business deals between Indonesia and the United States, worth US$20 billion," Sibarani revealed.
Based on BKPM's records, from 2010 to the third quarter of 2015, the United States' investment in Indonesia stood at US$ eight billion, with the mining sector attracting the largest share of US$7.2 billion, followed by trade at US$258 million, food industry at US$167 million, transport industry at US$142 million, and chemical or pharmaceutical industry at US$56 million.
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