Indonesia Sees Investment Worth Rp170.9 T in Q2 This Year
Indonesias Investment Coordinating Board (BKPM) reported that the investment realization from Foreign Investment (PMA) and Domestic Investments (PMDN) in the second quarter this year (April- June) reached Rp170.9 trillion or grew by 12.7 percent compared to the same period last year, which was Rp151.6 trillion. The investment realization also provide jobs for 345,000 people, BKPM added.
Head of BKPM Thomas Lembong said that the realization gives hope that the Government may meet this years target of investment realization amounting to Rp678.8 trillion.
Thomas also said that the launching of economic policy packages played an important role in that increase, and the implementation of the policy packages were expected to benefit businessmen, particularly in terms of ease of investment, acceleration and certainty of investment permits, and acceleration of settlement of investment disputes faced by their companies.
In the second quarter this year, PMDN realization reached Rp61 trillion, grew by 16.9 percent from the same period last year, which was Rp52.2 trillion, while PMA realization reached Rp109.9 trillion or grew by 10.6 percent from the same period last year, which was Rp99.4 trillion, Thomas said in a press conference on Wednesday (26/7) at the Office of BKPM, Jakarta.
Thomas also said that investment outside Java increased by Rp79.7 trillion or 46.6 percent of total investment or increased from 45.9 percent in the same period last year.
Investment realization in Java reached Rp91.2 trillion or 53.4 percent, he said.
In the meantime regarding the workforce absorption, BKPM Deputy Director for Investment Monitoring and Implementation Azhar Lubis asserted that investment realization in the second quarter of 2017 managed to provide jobs for 345,323 people (104,255 workers for PMDN projects, and 241,068 workers for PMA projects).
Job availability in this periods realization is additional workforce that was absorbed by investment activities implemented in the second quarter of 2017. This huge figure can stimulate the Government to provide more job opportunities, Azhar explained.
BKPM also recorded the investment realization (for PMDN and PMA) based on five largest investment destinations are Jakarta (Rp24.8 trillion, 14.5 percent), West Java (Rp24.8 trillion, 14.5 percent), East Java (Rp21.3 trillion, 12.5 percent), Banten (Rp11.5 trillion, 6.7 percent), and South Sumatra (Rp10.6 trillion, 6.2 percent).
In addition to that, investment realization (for PMDN and PMA) based on five largest business sectors sourced from mining (Rp20.8 trillion, 12.2 percent), electricity, gas, and water (Rp19 trillion, 11.1 percent), food industry (Rp18.9 trillion, 11.1 percent), basic metal, metal, machinery and electronic Industry (Rp17.5 trillion, 10.2 percent), and basic chemical, chemical and pharmaceutical industry (Rp12.8 trillion, 7.5 percent).
In the meantime, five largest PMA sources are Singapore (US$1.6 billion, 19.5 percent), Japan (US$1.4 billion, 17.5 percent), China (US$1.3 billion, 16.4 percent), Hong Kong (US$0.6 billion, 7.5 percent), and South Korea (US$0.5 billion, 5.8 percent). (EN/Humas BKPM/ES) (RA/EP/YM/Naster)
