Investment Commitment surges 167% in February to Rp355 trillion

1

Head of BKPM Franky Sibarani (2nd from left) briefs the press on investment commitment  (March 16) - photo : BKPM

JAKARTA (TheInsiderStories)– President Joko Widodo’s overseas visit, coupled with aggressive promotion by the National Investment Coordinating Board (BKPM) abroad seems to have brought fruitful results. As shown by BKPM data, investment commitment in the month of February, both foreign and domestic, surged 167 percent to Rp355 trillion, compared to the same month last year.

BKPM is now tracking investment commitments and released investment commitment on monthly basis for transparency purpose, as well as to help and facilitate investors realizing their investment.

Of the total investment,  BKPM has issued principle investment permits to foreign investors (Foreign Direct Investment) worth Rp281 trillion, representing an increase of 218 percent from the same period last year, while domestic investment permit (PMDN)

“The increase of investment commitment indicates that investors interest to invest in Indonesia remains strong,” the Head of BKPM Franky Sibarani said at a press conference on Wednesday (March 16).

Franky said the increase of investment was partly supported by improvements in investment service, including simplification and speedy investment process through the launch of 3-hour investment permit by the government as well as active promotion abroad by the government, including by BKPM.

As a case in point, in February alone, seven companies secured principle investment permit with investment value of Rp9.1 trillion with potentiality to create jobs of 5,762 people. The seven companies come from China, Taiwan, Singapore and South Korea.

In term of investment value, the US recorded the largest investment commitment in February valued at US$16.22 billion, including a plan by a US company to invest in petrochemical and basic chemical plant in Sulawesi Island.

In second place was China with investment value of US4395 million, British Virginia Island worth US$323 million, Singapore, US$302 million and South Korea US$292 million.

BKPM recorded a significant rise of investment in manufacturing sector, worth Rp235 trillion, surged 20 times compared to the same month last year.

“The total investment commitment in manufacturing sector represents 66 percent of total investment commitment in February,” Franky said.

Interestingly, large portion of the investment commitment would go to outside Java Island, amounting to Rp316 trillion, or 88 percent of total investment commitment. Investment commitment on Java Island reached Rp39.3 trillion.

Around 66 percent of investment outside Java island or Rp235 trillion would go to Sulawesi, followed by Sumatera amounting to Rp71.9 trillion.

Franky noted that some of investment from China comes to Indonesia through Singapore, Hong Kong or British Virgin Island, therefore the decline of investment from mainland China may not represent the true picture.

Franky added that most investment commitment from China are in electricity and smelter, but BKPM also sees increasing investment commitment in other sectors such as property and automotive component.

Five Largest Sources of FDI Commitment in February

No Source of FDI Commitment Investment Commitment Value

 

Year-on Year growth
1 United States of America 16.27 billion 154.18%
2. China 394.0 million -94%
3. British Vifgin Islands 323.0 million 505%
4. Singapore 302.0 million -29%
5. South Korea 292.0 million 604%
Total all countries US$20.195 billion 141%

 

The post Investment Commitment surges 167% in February to Rp355 trillion appeared first on The Insider Stories.

Source: The Insiderstories
Investment Commitment surges 167% in February to Rp355 trillion

You might also like More from author

Comments are closed, but trackbacks and pingbacks are open.