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JAKARTA (TheInsiderStories) – Indonesia Investment Coordinating Board (BKPM) announced the realization of investment in firs half (H1) of 2017 worth of Rp336.7 trillion (US$25.31 trillion). The value higher 12.9 percent compared to H1 2016 of Rp298.1 trillion or 49.6 percent from this year target Rp678.8 trillion

“Based on the data, I saw there is recovery in second quarter (Q2) compared to Q1. Several projects has completed in H1 this year as inaugurated by the president are Mitshubishi Motor factory in karawang and Shanghai Automotive (Wuling) by the Minister of Industry,” Chairman of BKPM Thomas Lembong told reporters at the press conference on Thursday (26/7).

He believed with revised rating by Standard & Poors, will trigger the additional capital inflows up to $15 billion in the future. To bring the capital inflows become realization of investment, Thomas said, need a big effort cause there is challenging from domestic and global market.

Bank Indonesia, He continued, confirmed the capital inflows kept flowing and asked the government to continue to improve the investment climate to attract more investment to come.

Thomas explained, something to help further to improve guarantees from bilatera lender like Japan International Cooperation Agency (JICA) and other agencies are to develop bilateral investment treaty, which have been discuss actively and have attractive by other head of the states.

Deputy chairman Azhar Lubis optimistic, this year targets is possible to reach. He noted, in Q2 of 2017 total investment realization recorded Rp170.9 trillion or up to 12.73 percent compared to the same periode Rp 151.6 trillion or jumped 34.4 percent from Q1 2017 of Rp165.8 trillion. Foreign Direct Investment (FDI) reached Rp206.9 trillion or rose 10.6 percent from last year Rp105.5 trillion.

The Domestic Direct Investment (DDI) up 16.9 percent in H1 from Rp102.6 trillion to Rp129.8 trillion. The value higher 11.3 percent q-on-q to Rp109.9 trillion from Rp97.0 trillion.

Based on origin countries, the higher investment in H1 of this year coming from Singapore $3.7 billion, followed by Japan $2.8 billion, China $2 billion, Hong Kong $1 billion, and others $5.1 billion.

The most interested by investors in mining, food, power, logam, machine and electronic and telecommunication sectors.

For the H2, Thomas worried the consumer purchasing index declining could give impact to the investment achievements in this year. But, He still optimistic with the government effort to ease investment climate will drive investors invest in Indonesia.

Note: Rate in 2017 Rp13,300 per US$ from a year ago Rp13,900 against US$

(Written by Linda Silaen, Email: linda.silaen@theinsiderstories.com)

 

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