Indonesian Investment Coordinating Board noted the investment realization entering the country in 2019 reached Rp809.6 trillion - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – Indonesian Investment Coordinating Board noted the investment realization entering the country in 2019 reached Rp809.6 trillion (US$57.82 billion), above the Rp792 trillion target set by the government. The figures also increased 12.24 percent or Rp88.3 trillion from Rp721.3 trillion reached in 2018.

“This is my promise at the beginning, the amount of investment realization in 2019 will reach the target. This realization reached 102.2 percent of the last year’s target of Rp792 trillion,” the chairman Bahlil Lahadalia said in a press conference at his office on Wednesday (01/29).

Lahadalia detailed the realization of the investment divided into the foreign investment of Rp423.1 trillion or 87.5 percent of the target of Rp483.7 trillion. The figure increased from the previous year amounting to Rp392.7 trillion. Then, domestic investment of Rp386.5 trillion or 125.4 percent of the target Rp308.3 trillion. The figure also increased from last year’s Rp328.6 trillion.

On a quarterly basis, investment realization in the fourth quarter of 2019 was Rp208.3 trillion, up 12 percent compared to the same period a year earlier. The number consists of domestic investment of Rp103 trillion or an increase of 18.5 percent and foreign investment of Rp105.3 trillion or an increase of 6.4 percent over the same period in 2018.

“So investment flow was recorded at Rp195.1 trillion in the first quarter, Rp200.5 trillion in the second quarter, Rp205.7 trillion in the third quarter, and Rp208.3 trillion in the fourth quarter of 2019,” Lahadalia noted.

He stressing the increased investment realization was in line with the rise in labor absorption work. Employment absorption increased by 73,783 people or 7.68 percent from the realization of 2018 of 960,052 people. Total the absorption of Indonesian workers throughout 2019 reached 1,033,835 people, he adds.

By sector, the largest investment flowed to transportation, warehouses, and telecommunications reaching Rp139 trillion or 17.2 percent of total investment. Then, electricity, gas, and water amounting to Rp126 trillion or 15.6 percent of the target.

It followed by housing, industrial estates, and offices Rp71.1 trillion or 8.8 percent, basic metal industry, metal goods, non-machinery, and equipment of Rp61.6 trillion or 7.6 percent, mining Rp59.5 trillion or 7.4 percent. The rest went to other industrial sectors of Rp352.4 trillion or 43.4 percent.

Based on the country, investments generally originating from Singapore reached $6.5 billion or 23.1 percent of the total investment. Followed by China at $4.7 billion or 16.8 percent, Japan of $4.3 billion or 15.3 percent, Hong Kong worth $2.9 billion or 10.2 percent, and the Netherlands at $2.6 billion or 9.2 percent. The rest came from other countries with an accumulation of US $ 7.2 billion or 25.4 percent.

While based on the location of the placement, the investment flow is embedded in West Java of Rp137.5 trillion or 17 percent of the total investment. Then Jakarta was Rp123.9 trillion or 15.3 percent, Central Java Rp59.5 trillion or 7.3 percent, East Java Rp58.5 trillion or 7.2 percent, Banten Rp48.7 trillion or 6 percent. The rest, flowing to other regions in the country reached Rp381.5 trillion or 47.2 percent.

US$1=Rp14,000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com