The Jakarta Post
Investment activities outside Java rose by a quarter to Rp 248.7 trillion (US$18 billion) last year, narrowing the investment gap with Java to 46:54, and helping the investment board to score a larger investment realization at 105 percent of the target.
The investment realization ratio between areas outside of Java and Java stood at 43:57 in 2014.
According to the latest data, investment realization in non-Java regions in 2015 rose at a faster pace compared to that realized in Java, by 24.5 percent year-on-year outside Java compared to 12.7 percent on Java.
"This is in line with the President's mission not to keep Java-centric orientation," Coordinating Investment Board (BKPM) chairman Franky Sibarani said in Jakarta on Thursday.
In total, Indonesia recorded investment realization of Rp 545.4 trillion, 5 percent above the Rp 519.5 trillion target. Domestic direct investment rose 15 percent to Rp 179.5 trillion, while foreign direct investment (FDI) grew 19 percent to Rp 365.9 trillion.
Java was still the center of investment with 54.4 percent of the investment realized, worth Rp 296.7 trillion. Sumatra followed with 15.5 percent of the investment share, while Kalimantan gained a 17.1 percent share and Sulawesi grabbed 6.1 percent.
Unfortunately, the eastern parts of Indonesia including Papua, Maluku, Bali and Nusa Tenggara in total snatched only 6.9 percent of realized investment in the country.
Based on the origin of investment, Singapore topped all other nations in 2015 with $5.9 billion or 20.2 percent investment realization in Indonesia. Malaysia followed with $3 billion (a 10.5 percent share), and Japan with $2.9 billion (a 9.8 percent share).
"Investors put their trust in Indonesia, such as Asahimas Flat Glass which is expanding its business and will be ready for exporting its products in February 2016. The automotive industry, specifically Japan, is expanding," BKPM director Azhar Lubis said.
Based on the information, 59.3 percent of realized domestic investment was new investment, while the remaining 40.7 percent was for expansion. Foreign investment recorded a similar pattern, scoring 62.7 percent new investment and 37.3 percent investment for expansion.
Chinese companies, Azhar said, had expanded their smelters in South Kalimantan, while South Korean and Taiwanese companies had enlarged their garment and footwear businesses in Central Java. (ags)(+)