JAKARTA (TheInsiderStories)—The Indonesian Investment Coordinating Board reported that the country recorded realization investment Rp 195 trillion (US$13.73 billion) in the first quarter (1Q) of 2019, up 5.3 per cent rise compared to 1Q 2018 of Rp185.3 trillion, said the agency today (04/30).

According to the Head of the Agency Thomas Lembong, said that the value of the investment realization in the first quarter had reached 24.6 percent of the investment target in 2019 of Rp 792.0 trillion. The achievement of this investment realization is very important to maintain that economic growth of 5.3 percent in 2019 can be realized.

Meanwhile, Lembong explained, the investment value for Domestic Investment amounting to Rp87.2 trillion and Foreign Investment amounting to Rp107.9 trillion. Meanwhile, the absorbed workforce is 235,401 people.

Compared to 1Q 2018, Lembong detailed, domestic investment growth in 1Q 2019 increased by 14.1 percent, from Rp76.4 trillion in 1Q 2018 to Rp. 87.2 trillion. While foreign capital investment of 1Q 2019 amounted to Rp107.9 trillion, this actually dropped 0.9 percent compared to 1Q 2018 which amounted to Rp108.9 trillion.

“Referring to the 1Q 2019 data, there is a positive trend towards FDI growth which was initially in the fourth quarter of 2018 which was -11.6 percent to -0.9 percent,” he said in Jakarta.

Lembong acknowledged that this positive trend will continue in the future, especially supported by the strong determination of the government to continue economic reform, better utilization of Online Single Submission (OSS), and intensification of investment escorts by various relevant government agencies both at the center and area.

The Agency also noted, the realization of investment based on project location (top 5) are: West Java (Rp37.3 trillion, 19.1 percent); DKI Jakarta (Rp24.7 trillion, 12.7 percent); Central Java (Rp21.4 trillion, 11.0 percent); East Java (Rp12.6 trillion, 6.5 percent); and Banten (Rp12.5 trillion, 6.4 percent).

“Another encouraging thing is the trend of increasing investment outside Java, which grew by 16.7 percent compared to 1Q 2018,” he said.

According to him, this achievement is contributed by investment in eastern Indonesia, especially in the mining processing sector which is very important for increasing exports. In addition to the sector, the tourism sector in eastern Indonesia has the potential to continue to be developed, especially marine tourism and special interest tourism, which of course will be able to diversify tourist destinations in Indonesia.

“In the first quarter of 2019 the realization of investment outside Java amounting to Rp 85.8 trillion increased 16.7 percent from the same period in 2018 amounting to Rp 73.5 trillion,” he explained.

Meanwhile, investment realization based on the business sector (top 5) are: Transportation, Warehouse and Telecommunications (Rp37.3 trillion, 19.1 percent); Electricity, Gas and Water (Rp33.2 trillion, 17.0 percent); Construction (Rp19.5 trillion, 10.0 percent); Housing, Industrial Estates and Offices (Rp18.8 trillion, 9.7 percent), and Mining (Rp15.1 trillion, 7.7 percent).

Furthermore, the top five countries that contribute to investment are: Singapore ($ 1.7 billion, 24.0 percent); China ($ 1.2 billion, 16.1 percent); Japan ($ 1.1 billion, 15.8 percent); Malaysia ($ 0.7 billion, 9.8 percent) and Hong Kong ($ 0.6 billion, 8.1 percent).
“Along with the launch of the KOPI MANTAP (refer to Investment Guard Coordination Utilizing Applications) last month, we together with the Regional Government and related Ministries / Institutions will continue to oversee investment in order to facilitate investment constraints and efforts to accelerate investment realization,” said Acting-Deputy of Investment Implementation Control Farah Ratnadewi Indriani.

US$1: Rp14,200

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