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China likely biggest investor in Indonesia
Investment Coordinating Board (BKPM) has recorded Singapore as the largest contributor of investment in Indonesia with US$5
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Investment Coordinating Board (BKPM) has recorded Singapore as the largest contributor of investment in Indonesia with US$5.9 billion, a 20 percent share of total foreign investment in 2015. However, China, in ninth position with $0.63 billion believed to be the biggest foreign investor in Indonesia as Chinese investors often invest in other countries through proxy companies that are based in other countries such as Singapore or Hong Kong.(ptsp.bkpm.go.id) (BKPM) has recorded Singapore as the largest contributor of investment in Indonesia with US$5.9 billion, a 20 percent share of total foreign investment in 2015. However, China, in ninth position with $0.63 billion believed to be the biggest foreign investor in Indonesia as Chinese investors often invest in other countries through proxy companies that are based in other countries such as Singapore or Hong Kong.(ptsp.bkpm.go.id)
I
span class="caption">Investment Coordinating Board (BKPM) has recorded Singapore as the largest contributor of investment in Indonesia with US$5.9 billion, a 20 percent share of total foreign investment in 2015. However, China, in ninth position with $0.63 billion believed to be the biggest foreign investor in Indonesia as Chinese investors often invest in other countries through proxy companies that are based in other countries such as Singapore or Hong Kong. (ptsp.bkpm.go.id)
China,
and not Singapore, is believed to be the biggest foreign investor in
Indonesia, as Chinese investors often invest in other countries through
proxy companies that are based in other countries such as Singapore or
Hong Kong.
According to the latest investment realization data
from the Investment Coordinating Board (BKPM), Singapore is the largest
contributor with US$5.9 billion in investment, a 20 percent share of
total foreign investment. China was in ninth position with $0.63 billion
despite a 47 percent year-on-year (YoY) increase, the highest growth in
the history.
"Chinese investment is sometimes conducted through
subsidiaries based in another countries. For instance, the investor of
Sokonindo Automobile, the manufacturer of mini pickup DFSK is from the
Chinese mainland but registered in Hong Kong," BKPM Director Azhar Lubis
said in Jakarta.
Unfortunately, he continued, BKPM could not monitor investments made through the proxy countries.
Most
of investments coming from China were for smelters, especially in
Southern Kalimantan, such as the construction of the first bauxite
smelter in Indonesia. Another mega project in which China is providing
investment is the high-speed railway between Jakarta and Bandung.
"The
high-speed train project will increase the amount of China's investment
in Indonesia drastically. There will be a big contribution in the
supply chain as joint ventures will produce the train engines, carriages
as well as spare parts," BKPM Chief Franky Sibarani said. (ags)(+)
