US Companies to Boost Investment in Indonesia
3 October 2013 12:32 WIB
TEMPO.CO, Jakarta - US companies plan to boost their investment in Indonesia by US$61 billion within the next five years to develop extractive industries such as oil, gas, mineral and manufacturing.
US Chamber of Commerce chief Thomas J. Donohue said the planned increase would jack up the realization of US foreign investment in Indonesia, which saw US$65 billion in 2004-2012. Donohue said the increase in investment was necessary to help Indonesia achieve its economic growth and investment targets.
“In our review, investing US companies have contributed to the government through corporate revenue taxes at an average of US$74.2 billion in 2012,” he said in the launch event of Reports on US Direct Investment Impacts on Indonesian Economy on Thursday, October 3, 2013.
He took for example that US major corporations engaging in the upstream oil and gas businesses alone had contributed around US$17 billion to the national revenue. “Which is around 47 percent of the total non-tax state revenue,” he said.
He explained the realization of US foreign investment in Indonesia would boost Indonesia’s GDP and generate more employment opportunities. He said each dollar invested in the country would add US$1.44 to the national GDP and opened up 242 job opportunities. “For the mining sector alone, US companies have employed around 35,000 people,” he said.
AYU PRIMA SANDI
