Investment Realization in 2016 Exceeds National Target by 3%
Date 26 Januari 2017
The investment realization in Q4 (from October to December) 2016 reached Rp159.4 trillion, an increase of 9.6 percent compared to the same period in 2015. Of this amount, Domestic Direct Investment (PMDN) reached Rp58.1 trillion, an increase of 25.8 percent compared to the same period last year. Meanwhile, Foreign Direct Investment (PMA) increased by 2.1 percent to Rp101.9 trillion.
“With the addition of the Q4 performance, the investment realization from January to December 2016 reached Rp612.8 trillion, an increase of 12.4 percent over the same period last year, amounting to Rp545.4 trillion,” Chairman of Indonesian Investment Coordinating Board (BKPM) Thomas Lembong said in a press release, Wednesday (25/1).
Lembong said that the investment realization of PMDN from January to December increased by 20.5 percent amounting to Rp216.2 trillion, while the realization of PMA increased by 8.4 percent to Rp396.6 trillion. “The achievement of PMDN and PMA investment realization in 2016 reached Rp 612.8 trillion, surpassing national target of the 2016 investment realization amounted to 3 percent (from the set target of Rp594.8 trillion),” he said.
Lembong considered that the investment realization in 2016 that exceeded the national target by 3 percent shows a positive sign. In addition to its investment performance that is still growing in the midst of global and regional economic slowdown, it also shows the impact of multiple investments, that is, an increased labor absorption.
“The significance of the positive achievements of the investment realization also portrays investor trust to the Indonesian economic fundamentals and the prospects for future economic growth can be maintained,” Lembong said.
The BKPM press release also stated that PMDN contributed to 124,843 job creation, while PMA contributed to 309,623, making a total labor absorption is 436,466 people.
When it comes to the spread of investment, based on the release, during the period of January – December 2016, the investment realization outside Java Island reached Rp284.5 trillion (46.4 percent of total investment realization), an increase of 14.2 percent from the same period last year, which is expected to be able to create equitable development to different regions, especially outside Java.
Based on project location, the top five provinces that absorbed the highest PMDN and PMA from January to December 2016 are West Java (Rp105.3 trillion), East Java (Rp72.9 trillion), Jakarta (Rp58.7 trillion), Banten (Rp52.4 trillion), and South Sumatra (Rp47.1 trillion).
According to Lembong, in order to encourage increased investment outside Java, cooperation of all stakeholders is required, including the Central Government institutions and the Investment Office and the Provincial One-Stop Integrated Services (DPMPTSP) in regencies/cities throughout Indonesia to provide ease of doing business for investors. (PR of BKPM/ES) (MUR/YM/Naster).