Indonesia’s realized investment rises 17.6% in Q1, 2016

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

JAKARTA (TheInsiderStories) – The National Investment Coordinating Board (BKPM) announced Monday (April 25) that the realized investment in the first quarter has reached Rp146.5 trillion, increased 17.6 percent from the same period last year at Rp124.6 trillion.

Chairman of BKPM Franky Sibarani announced that of the investment, domestic investments (PMDN) reached Rp50.4 trillion, up 18.6 percent, from Rp42.5 trillion in the same period last year, while realized foreign direct investment (FDI) reached Rp96.1 trillion, rose 17.1 percent from the same period last year at Rp82.1 trillion.

Franky said the five largest investors in the quarter were Singapore (US$2.9 billion), Japan (US$1.6 billion), Hong Kong (US$0.5 million), China (US$500 million) and Netherland  (US$300 million).

Franky said the increase of both domestic and foreign direct investment gives hope that his office’s investment target this year of Rp595 trillion will be achievable.

Franky said there has been a positive trend with regard to distribution of investment. FDI is no longer concentrated on Java Island but also in outside Java Island. Based on the BKPM data, the investment in outside Java reached Rp65.8 trillion in the first quarter or 44.9 percent of total investment in the quarter, compared to 43.9 percent in the same period last year.

Realized investment on Java Island reached Rp80.7 trillion in the quarter or 55.1 percent of total investment in the first quarter.

In term of locations of the investment, South Sumatera recorded as the largest investment destination amounting to US$1.9 billion, followed by West Java (US$1.6 billion), Banten (US$0.9 billion, DKI Jakarta (US$ 0.6 billion), Central Sulawesi (US$ 0.3 billion). The largest domestic investments destinations were recorded by East Java (Rp13 trillion), Central Kalimantan (Rp6.3 trillion), West Java (Rp6.1 trillion), Central Java (Rp5.3 trillion) and Banten (Rp4.3 trillion.

In term of industry sector, the largest investment was recorded by paper, pulp and printing industry amounting to US$1.9 billon, followed by basic chemical, chemical and pharmaceutical (US40.9 billion), transportation equipment (US$0.8 billon), basic metal and electronics (US$0.7 billion and food (US$0.5 billion.

Domestic investment mostly went to food industry (Rp8.9 trillion, agriculture and plantation (Rp 8.8 trllion, basic chemical  and pharmaceutical (Rp 5.7 trillion); electricity, gas and water (Rp 5.1 trillion and transportation, warehouse and telecommunication Rp 5.0 trillion. (*)

 

 

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Source: The Insiderstories
Indonesia’s realized investment rises 17.6% in Q1, 2016

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