JAKARTA (TheInsiderStories) - The National Investment Coordinating Board (BKPM) announced on Wednesday (Feb. 3) that investment commitment in January reached Rp206 trillion, surged 119 percent compared to the same month last year (year-on-year/yoy), indicating that Indonesia remains attractive as an investment destination.
“This shows that investors’ confidence remains high and investment climate is still conducive despite slowdown in the world economy,” BKPM Chairman Franky Sibarani said at a press conference. Given the positive trend he expects this year’s realized investment target of Rp545.4 trillion will be achievable.
Majority of the direct investment commitments came from foreign investors (FDI), amounting to Rp168 trillion, while he remaining Rp38 trillion were domestic investments, representing an increase of 261 percent and 101 percent respectively.
The largest investment commitment came from Singapore amounting to US$7.5 billion, followed by China US$2.81 billion, Netherland US$316 million, South Korea US$280 million, Japan US$132 million and Malaysia US$105 million,
Meanwhile, the Indonesian government is planning to relax ownership rules in geothermal and retail sector as a move to boost much-needed investment in the country. The planned new policy will be included in the upcoming foreign negative investment list (DNI), scheduled to be issued in March this year.
Chairman of BKPM Franky Sibarani said the government plans to raise foreign ownership in companies engaging in geothermal power as well as in elecricity transmission business.
In geothermal sector, foreign investors would be allowed to own up to 67 percent in a company that develops geothermal power with generating capacity of below 10 megawatts (MW). Previously, geothermal power with capacity of below 10 MW is closed to foreign investors.
In addition, foreign ownership in companies investing in geothermal power with capacity of over 10 MW will be fully opened up to 100 percent, from 95 percent previously.
Franky said the government is also planning to partly open foreign direct investment in electricity transmission business, which is previously closed for foreign investment.
Foreign ownership in companies developing high-voltage (HV) and ultra-high voltage (UHV) grid will be partly opened up to 49 percent from zero percent to foreign investment, while for low to medium voltage grid remains close to foreign investment.
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