JAKARTA, June 7(Xinhuanet)-- Japanese businessmen plan to increase investment in Indonesia up to at least 20 billion US dollars in a year, or 122 percent higher than the figure in the previous year, local media reported Tuesday.

Chairman of the Indonesian Chamber of Commerce and Industry M.S.Hidayat said the commitment was in the wake of working visit of the Indonesian President Susilo Bambang Yudhoyono to Japan.

"President Susilo explained the investment climate in Indonesia where the government has made improvement in the labor law, tax reform, custom office and bureaucracy," he said.

Hidayat disclosed that currently there have been eight Japanese companies insisted on investing in business sectors in Indonesia, the Bisnis Indonesia said.

He was optimistic that if the companies realized their commitment, they could invest up to 40 billion US dollars in five years.

President Susilo and the Japanese prime minister have agreed to boost investment through the Strategic Investment Action Plan beginning in June.

Japan is Indonesia's largest donor and main source of foreign investment, as well as one of its main export markets. Indonesia enjoyed a trade surplus of 9.59 billion US dollar last year. Enditem