Kedutaan Besar Republik Indonesia
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Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

French apparel-maker to invest in RI

A French company specializing in sports apparel is planning to invest US$500 million in Indonesia, underlining growing interest from European businesses to invest in the country.

Investment Coordinating Board (BKPM) chairman Franky Sibarani said the Lille-based company, the name of which was not disclosed, had conveyed its interest through BKPMa��s representative in London.

Franky added the French company would cooperate with local companies to build a sports research and development center, an integrated department store as well as an import-export system in Indonesia.

a�?Not only will the company market its products domestically, it will also export to other department stores overseas,a�? Franky said in an official statement on Friday.

France is seen by BKPM as one of the top prospects from where to source more investment. The latest plan would see a huge increase from that country, which last year contributed only Rp 123 billion to foreign investment.

Other EU countries a�� which are particularly interested in investing in minerals, infrastructure and manufacturing a�� also displayed growing interest this past year. According to BKPM data, investment commitments from Europe totaled Rp 37.3 trillion in 2015, up 16 percent from 2014a��s Rp 32.2 trillion. The biggest commitment was from the UK with Rp 9.19 trillion a�� up 338 percent from 2014.

Based on this trend, Franky expressed hope for solid growth. a�?We will gradually increase investment from Europe in five years.a�?

He said his office would maintain communication with the investors to ensure the proposed projects would be realized.

a�?Our representative in London and marketing officers all over Europe will directly communicate all the facilities [the investors] would get when investing in Indonesia,a�? Franky said.

Meanwhile, BKPMa��s investment promotion representative in London, Nurul Ichwan, said the French investor was a big name in sports, with 1,030 department stores worldwide. a�?It expects to operate its first department stores in Malaysia and Indonesia this year,a�? he said.

In October 2015, the BKPM launched a three-hour licensing service for certain investors planning to open businesses in a bid to attract large-scale investment. The service, which is part of the governmenta��s second economic policy package, will allow prospective investors with a minimum investment of Rp 100 billion (US$7.33 million) and/or a plan to employ more than 1,000 workers to have their preliminary permits processed at the BKPMa��s one-stop integrated service (PTSP) within three hours.

Recently, the BKPM has set itself a target to attract more investors from Europe, primarily from major countries like the UK, Germany, Netherlands, France, Spain and Switzerland.

Source: www.thejakartapost.com, 14 March 2016