JAKARTA (TheInsiderStories) – Indonesia Realized investment, both domestic and foreign direct investment, in 2015 period reached Rp 545.4 trillion (US$39.23 billion), representing an increase of 17.8 percent from previous year Rp 463.1 trillion, indicating that Indonesia’s economy is showing positive trend, the National Investment Coordinating Board (BKPM) Chairman Franky Sibarani announced Thursday (Jan. 21).
He said realized foreign direct investment (FDI) reached Rp 365.9 trillion, up 19.2 percent from previous year, while realized domestic direct investment (DDI) reached Rp 179.5 trillion, or up 15 percent.
The realized investment in the fourth quarter of 2015 reached Rp145.4 trillion, increased 20.8 percent from the same period in previous year. Realized FDI in the fourth quarter stood at Rp 99.2 trillion, up 26.0 percent from fourth quarter 2014, while realized DDI reached Rp 46.2 trillion or up 10.8 percent.
The realized investment last year has helped create 1.44 million new jobs.
BKPM Chairman Franky Sibarani said at a press briefing that the realized investment in 2015 was higher than the agency’s full year target of Rp519.5 trillion.
He pointed out that the proportion of realized investment outside Java showed a positive trend. In 2015, the actual investment outside Java island reached Rp 248.7 trillion or 45.6 percent from the total investment from a year ago Rp199.8 trillion or 24.5 percent of total investment. This shows that the government’s drive to encourage more investment to outside Java island has begun to show positive results.
Franky said that the increase in realized investment in 2015 injected optimism about the bright prospect of investment in Indonesia going forward, in particular after the government issued various economic policy packages.
BKPM has issued various policies, including simplifying investment permits to three hours to get principle permits, including permit to establish a company and in obtaining tax identification number (NPWP) as well as simplification procedure to get land permit.
Data from BKPM revealed that the top five actual FDIs last were electricity, gas and water which reached US$1.4 billion, followed by basic chemical, metal goods and electronic worth US$1.0 billion, FDI in housing, industrial zone and office worth $ 1.0 billion, mining worth US$900 million and agriculture US$700 million.
The top five actual domestic investment in 2015 were first, non-metallic minerals Rp 8.6 trillion, construction Rp7.5 trillion, food industry Rp 6.4 trillion, metal chemical, chemical and pharmaceutical goods Rp4.7 trillion and electricity, gas and water Rp4.5 trillion.