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Govt eyes Rp 595 trillion investment this year
Higher target: Investment Coordinating Board (BKPM) head Franky Sibarani announces this yearâs investment target at his office in South Jakarta on Friday
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Higher target: Investment Coordinating Board (BKPM) head Franky Sibarani announces this yearâs investment target at his office in South Jakarta on Friday. The board projects that investment realization will reach nearly Rp 595 trillion (US$41.65 billion), a 14 percent increase from around Rp 519 trillion last year. (JP/DMR) (BKPM) head Franky Sibarani announces this yearâs investment target at his office in South Jakarta on Friday. The board projects that investment realization will reach nearly Rp 595 trillion (US$41.65 billion), a 14 percent increase from around Rp 519 trillion last year. (JP/DMR)
Higher target: Investment Coordinating Board (BKPM) head Franky Sibarani announces this year's investment target at his office in South Jakarta on Friday. The board projects that investment realization will reach nearly Rp 595 trillion (US$41.65 billion), a 14 percent increase from around Rp 519 trillion last year. (JP/DMR)
The Investment Coordinating Board (BKPM) aims to boost realized investment in the country to nearly Rp 595 trillion (US$41.65 billion) this year on the back of continued marketing activities and clearance of red tape.
BKPM head Franky Sibarani said on Friday that the government aimed to increase realized investment by 14.4 percent to Rp 594.8 trillion this year from last year's target of Rp 519 trillion.
'['¦] our focus this year will be to accelerate investment realization and to guard those investments that involve ongoing construction,' Franky told reporters.
He added that while he could not promise that the BKPM would be able to boost investment commitments to the same level as last year, it was important to accelerate the realization of investment commitment.
Indonesia booked investment commitments worth Rp 1.8 quadrillion last year, a 45 percent increase from the previous year, with some Rp 3.5 quadrillion-worth of principal permits submitted in 2015, according to BKPM data.
Among investment projects set to commence this year are the construction of a synthetic rubber plant by PT Synthetic Rubber Indonesia and the construction of a ferronickel smelter in North Maluku worth over Rp 1 trillion.
'We will monitor a total of 100 construction projects this year,' said the BKPM's deputy director for investment monitoring and implementation, Azhar Lubis.
Investment realization hit Rp 400 trillion in the first nine months of last year and is forecast to hit Rp 535 trillion for the whole year of 2015 ' surpassing the target of Rp 519 trillion.
From January to September last year, foreign direct investment (FDI) accounted for 66.7 percent of total realized investment, with the remainder from local investment.
This year, BKPM aims for FDI to contribute Rp 386.4 trillion, or 65 percent of the RP 594.8 trillion-target.
Franky said that he was optimistic that this year's realized investment target could be achieved as BKPM would make investment license procedures more efficient, guard investment realization, carry out active marketing and spread investment to the wider society.
The BKPM, he went on, would continue improving its three-hour investment permit procedure, and would also expand its focused foreign markets to Hong Kong, India, Thailand, Vietnam, Germany, the Netherlands, Italy, Canada and Russia.
Last year, the BKPM's overseas offices focused on drawing net investment from Japan, South Korea, China, Taiwan, Singapore, Malaysia, Australia, the UK, the US and Middle Eastern countries.
The BKPM would focus on attracting investment to labor-intensive manufacturing industries and on netting more investment outside Java, Franky added.
The government aims to pocket Rp 313.5 trillion in investment in the manufacturing sector, Rp 183.7 trillion in trade and services and Rp 97.6 trillion in the extractive sector. It also aims to have 49.1 percent of total investment placed outside Java this year, rising from 45.2 percent of last year's total investment.
The Industry Ministry has earmarked 14 areas outside Java to be developed into industrial zones.
A new government regulation on industrial zones providing more incentives and ease for both industrial zone operators and tenants is hoped to expedite the development of regions outside Java, according to the Industry Ministry's director general for industrial estate development, Imam Haryono.
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