JAKARTA (TheInsiderStories) - President Joko Widodo said Indonesia targeting to collect an investment Rp670 trillion (US$49.63 billion) in 2017, up 12.70 percent from this year’s target Rp594.5 trillion focusing on import substitute industry. In the following years, He added, government estimate investment value could reach Rp840 trillion in 2018.
“I have given clear orders to the team of economy, especially the Head of BKPM that incoming investment targets should be rigorously pursued in any way. Our desire that at least 45% of our GDP. So this will give the economy a good trigger,” President said in the Sarasehan 100 Ekonomi Indonesia on Tuesday.
For that, He continued, government will focus on import substitute industry, infrastructure mega projects and tourism to attract investors bring their money to the country.
Head of National Investment Coordinating Board (BKPM) Thomas Lembong said with the achievement in the third quarter, realized investment in Jan-Sept reached Rp453.4 trillion, surged 13.4 percent compared to Rp400 trillion in previous year.
Realized domestic direct investment (DDI) in the nine months rose 18.8 percent to Rp158.2 trillion, while realized FDI rose 10.6 percent to Rp295.2 trillion. The new investments managed to create 960,041 new job opportunities, it said.
Most of the foreign capitals parked at the sectors of metal industry, machinery and electronic, said Azhar Lubis, deputy chairman for controlling and implementation at the board.
Lembong said the increased realized investment was partly attributable to the government’s drive to simplify business permits as reflected by the increase of Ease of Doing business (EODB) issued by the World Bank, which now improved to 91 from previously ranked 109.
According to Thomas, until September, the body has recorded investment interest reached over than Rp 1,800 trillion.
The government has taken steps to lure foreign capitals, including the issuance of a raft of economic stimulus packages amid at better fiscal condition and the prospect of tax relaxation program which has spurred a huge inflow of asset repatriations into the country.