The Jakarta Post
The Investment Coordinating Board (BKPM) says investment grew 12.7 percent to Rp 170.9 trillion (US$12.85 billion) in the second quarter of 2017 from the Rp 151.6 trillion in the same period last year.
“If it is calculated in dollars, investment grew 17.78 percent to $12.85 billion from $10.91 billion in the second quarter of 2016,” BKPM chairman Thomas Lembong said in Jakarta on Wednesday.
"The investment figure in rupiah was understated because of the conversion effect due to a stronger rupiah. We used Rp 13,900 per dollar last year and now we use Rp 13,300 per dollar," Thomas said at a press conference at his office.Read also: New policy package to boost investment: Minister
In the first half, total investment increased 12.95 percent year on year to Rp 336.7 trillion from Rp 298.1 trillion in the same period last year.
It means the BKPM has met 49.6 percent its Rp 678.8 trillion target for 2017.
First half investment was boosted by investment in the steel and machinery sector that was realized in the second quarter. Automotive Giant Mitsubishi also inaugurated its Rp 7.5 trillion factory in April.
In July, Chinese manufacturer SAIC GM Wulling launched a US$700 million factory and Krakatau-Osaka Steel launched its $200 million joint factory. (bbn)