BKPM chief Franky Sibarani. (Kompas.com/Ambaranie Nadia K.M)

The Coordinating Investment Board (BKPM) said despite the gloomy domestic outlook, Indonesia's realized investments showed a significant increase up until September 2015 and there was reason to be optimistic that they would exceed this year's target of Rp 519.5 trillion (US$38.37 billion).

In the third quarter alone, the country's realized investments both from local and foreign investors rose by 17 percent to Rp 140.3 trillion quarter-to-quarter (qtq). Cumulatively, in January to September this year, the realized investments rose by 16.7 percent to Rp 400 trillion year-on-year (yoy), or 77 percent of this year's target.

BKPM chief Franky Sibarani said this achievement showed the government could maintain investment growth amid the economic slowdown

"With the Rp 400 billion that has been achieved, we are optimistic that this year's target will be reached. Besides, if we look at the last 5 years, investment always increases in the third and fourth quarters," said Franky in a press conference on Thursday.

Franky added the positive achievements of realized investments in January-September had resulted in optimism in Indonesia's investment prospects in the future.Moreover, he said, the government had issued various policy packages that provided convenience to investors.

According to BKPM data, the realization of investment in January-September this year recorded a larger proportion of investment in comparison with outer regions, which was recorded at Rp 180.7 trillion, or 45.2 percent. This proportion rose compared to the same period last year, which amounted to 43.6 percent of total investment.

"One of the government's visions is an equitable development or a development that is based on an Indonesia centric orientation. The increase in the proportion of investment realization outside Java is one indicator of equitable development," Franky said.

Of the total realized investment in January to September 2015, foreign direct investment (FDI) accounted for Rp 266.8 trillion, or rose by 16.9 percent, while domestic direct investment (DDI) stood at Rp 133.2 trillion, rising 16.4 percent according to the board'€™s data.

Franky further said some 79 percent of FDI was new investments while 21 percent was an expansion of existing investments. As for DDI, 61 percent were new investments. "So in the middle of the economic slowdown we expect that there is a turning point, indicated by the new investments that continue to emerge," he said.

BKPM'€™s deputy director for investment monitoring and implementation Azhar Lubis added that between January and September this year, Singapore, Malaysia and Japan stood out as the three biggest FDI contributors in Indonesia, reaching $3.5 billion, $2.9 billion and $2.5 billion, respectively. (ebf)(++++)

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