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Jakarta Post

At $46 billion, 2016 direct investment beats govt target

  • Stefani Ribka

    The Jakarta Post

Jakarta   /   Wed, January 25, 2017   /  08:24 pm
At $46 billion, 2016 direct investment beats govt target Businesspeople wait for their turn to process their investment principal permit applications at the Investment Coordinating Board's office in Jakarta. (-/-)

Realized direct investment from local and foreign entities increased by 12.4 percent to Rp 612.8 trillion (US$45.97 billion) last year from Rp 545.4 trillion in 2015, beating the government’s target of Rp 594.8 trillion.

Investment Coordinating Board (BKPM) head Thomas Lembong said local investment had grown by 20.5 percent to Rp 216.2 trillion, outpacing foreign investment, which had risen by 8.4 percent to Rp 396.6 trillion.

"The surge in local investment shows positive sentiment and growing confidence among local businesspeople about the country. We should maintain this positive momentum by not letting the political situation ahead of the Jakarta gubernatorial election distract us from reforming the economy," he said on Wednesday.

Thomas noted strong investment growth particularly outside Java —growing at a rate of 14.2 percent to Rp 284.1 trillion last year. However, Java is still the main investment region, attracting Rp 328.7 trillion of realized investment. West Java is the most favored destination, followed by East Java, Jakarta, Banten and South Sumatra.

Singapore still tops the list of source countries for foreign investment to Indonesia with $9.1 billion, followed by Japan with $5.4 billion and China with $2.6 billion. The last two were in third and ninth position, respectively, in 2015.

As for sectors, investors are most interested in chemicals and pharmaceuticals, followed by metals, food and beverages, electricity and power plants as well as mining. (ags)

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