Investment Realization Rises by 5.3% in Q1

The Investment Coordinating Board (BKPM) published investment realization data for the first quarter (January-March) of 2019 with a total investment of Rp195.1 trillion, a 5.3 percent increase over the same period last year (Rp185.3 trillion).

“The investment value during the first quarter of 2019 for Domestic Capital Investment (PMDN) amounted to Rp87.2 trillion and Foreign Capital Investment (PMA) amounted to Rp107.9 trillion. During the first quarter of 2019, the number of Indonesian workers absorbed was 235,401 people,” Head of the BKPM Thomas Lembong said during a press conference in Jakarta, Tuesday (30/4).

According to Lembong, the investment realization value in the first quarter has reached 24.6 percent of the investment target in 2019 (Rp792.0 trillion). “The investment realization achievement is crucial to ensure that economic growth of 5.3 percent in 2019 can materialize,” he said.

Referring to the 2019 first quarter data, Lembong assessed that there was a positive trend towards PMA growth. The fourth quarter data of 2018 recorded a -11.6 percent growth, while data from the first quarter of 2019 recorded a -0.9 percent growth.

“We predict that this trend will remain positive in the future, especially if supported by the strong determination of the Government to continue economic reform, better utilization of Online Single Submission (OSS), and intensification of investment facilitation by various relevant government agencies both at the central and regional levels,” he continued.

Furthermore, the top five of the realization of both PMDN and PMA based on project location are: West Java (Rp37.3 trillion, 19.1 percent); Jakarta (Rp24.7 trillion, 12.7 percent); Central Java (Rp21.4 trillion, 11.0 percent); East Java (Rp12.6 trillion, 6.5 percent); and Banten (Rp12.5 trillion, 6.4 percent).

The BPKM Head also acknowledged an increasing investment trend outside Java, which grew by 16.7 percent compared to the first quarter of 2018. This achievement was contributed by investment in eastern Indonesia, especially in the mining processing sector which is very vital for increasing exports.

In addition, he added, tourism sector in eastern Indonesia has the potential to be further developed, especially marine tourism and special interest tourism, which will be able to diversify tourist destinations in Indonesia.

In the first quarter of 2019, the investment realization outside Java amounted to Rp85.8 trillion, a 16.7 percent increase over the same period last year (Rp73.5 trillion).

Meanwhile, the top five of PMDN and PMA realization based on business sector are: Transportation, Warehouse, and Telecommunications (Rp37.3 trillion, 19.1 percent); Electricity, Gas, and Water (Rp33.2 trillion, 17.0 percent); Construction (Rp19.5 trillion, 10.0 percent); Housing, Industrial Estate, and Offices (Rp18.8 trillion, 9.7 percent); and Mining (Rp15.1 trillion, 7.7 percent).

As for the top five of PMA origins are: Singapore with US$1.7 billion (24.0 percent); China with US$1.2 billion (16.1 percent); Japan with US$1.1 billion (15.8 percent); Malaysia with US$0.7 billion (9.8 percent) and Hong Kong with US$0.6 billion (8.1 percent). (Investment Coordinating Board PR/ES)

Translated by : Fairuzzamani Inayatillah
Edited by : Estu Widyamurti, Muhardi