JAKARTA (TheInsiderStories) – Indonesia recorded weak investment realization of Rp173.8 trillion (US$11.08 billion) in the third quarter (3Q) of 2018, or dropped 1.6 percent compared to last year Rp176.6 trillion, said the chairman on Tuesday (30/10). in the 2Q 2018, the country’s investment realization recorded Rp176.3 trillion.
For the period of January – September of 2018, the total investment realization recorded of Rp535.4 trillion, up 4.3 percent compared to the same period in 2017 at Rp513.2
The chairman of the Investment Coordinating Board Thomas Lembong blamed the weakening of the Rupiah and trade issues on the declining of the realization.
“The fluctuations of the Rupiah triggered by rising of US interest rates, negative trade balance, US trade war with China and other countries caused investors wait and see also delay the realization of investment,” He told reporters at his office.
During the 3Q, the foreign direct investment (FDI) dropped significantly from Rp111.7 trillion to Rp 89.1 trillion, or decreased by 20.2 percent compared to a year ago. While, the realization of domestic investment (DDI) recorded Rp84.7 trillion, increased by 30.5 percent compared to the 3Q of 2017 Rp64.9 trillion.
Based on the project location, at the top is West Java Rp29.3 trillion, Jakarta Rp26.2 trillion, Banten Rp16.1 trillion, Central Java Rp14.3 trillion, and East Java Rp11.5 trillion.
From the business sectors, the top five are transportation, warehouse and telecommunications Rp30.4 trillion; electricity, gas and water Rp28.6 trillion; mining Rp16.1 trillion; housing, industrial estates and offices Rp.13.6 trillion; while food industry Rp13.3 trillion.
Furthermore, the top five countries for FDI are Singapore $1.6 billion, Japan $1.4 billion, Hong Kong and China $500 million, Malaysia $500 million, and China $500 million.
Lembong added,”The declining will certainly become homework for us. The government will review and evaluate again the policies that are considered to interfere with the stability of investment.”
He continued, the government will also anticipating the external factors that might have an impact on the realization of investment in Indonesia in the future, like an economic crisis in developing countries such as Turkey and Argentina.
“This anticipation needs to be done to prevent investors from withdrawing capital has been invested through the capital market or money market,” said Lembong.
Acting Deputy for Investment Implementation Control at the agency, Farah Ratnadewi Indriani added, the absorption of Indonesian workers in the 3Q reached 213,731 people with details of 89,622 people in the domestic projects and 124,109 peoples in FDI projects.