What if Japanese Investors Cancel Investment in Indonesia?

The Investment Coordinating Board (BKPM) believes that Japanese investment in Indonesia will not fall this year despite last month’s 8.9 magnitude quake and ensuing tsunami.
"Up till now we see no sign of Japanese investment falling. Japan will remain one of the top five sources of foreign investment in Indonesia this year," BKPM Deputy Head for Investment Control M.M Azhar Lubis said here on Wednesday.
Last year, Japan was the fourth biggest investor in Indonesia, with a total investment of US$712.6 million. Singapore ranked first with US$5.005 billion, followed by Britain with US$1.89 billion, and the United States with US$930.8 million.
In the first quarter of 2011, Japan ranked third with US$345.2 million in 78 projects next to Singapore with US$1.138 billion in 142 projects and the United States with US$345.2 million in 24 projects.
Trailing behind in the fourth place was British Virgin Islands with US$198.3 million in 30 projects, and the United Kingdom in the fifth place with US$163 million in 36 projects. Azhar said the Japanese investment was mostly long-term investment.
"If they (Japanese investors) cancel investment plans this will raise cost of money," he said.