Investment Realization Jumps 13.2% to US$38 billion in 9M

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JAKARTA (TheInsiderStories) – Indonesia Investment Coordinating Board (BKPM) announced the realization of investment during January to September (9M) of 2017 worth of Rp513.2 trillion (US$38 billion). The value is 13.2 per cent higher compared to 9M of 2016 of Rp453.4 trillion or 75 per cent from this year target Rp678.8 trillion

“These figures showed that investments still play a role in creating jobs for the people. We will continue to oversee the realization of investments that potentially absorb labor,” Chairman of BKPM Thomas Lembong told reporters at the press conference on Monday (30/10).

During the period (9M), total Foreign Direct Investment (FDI) recorded Rp318.5 trillion or 7.9 per cent up from a year ago worth Rp295.2 trillion and Domestic Direct Investment (DDI) Rp194.7 trillion up 13.1 per cent compared to the same period in 2016 Rp158.2 trillion.

He believed with revised rating by Standard & Poors, will trigger the additional capital inflows up to $15 billion in the future. To bring the capital inflows become realization of investment, Thomas said, need a big effort cause there is challenging from domestic and global market.

Deputy chairman Azhar Lubis adding, in third quarter (Q3) of this year total investment reached Rp176.6 trillion or up to 13.7 per cent compared to the same period of 2016 Rp155.3 trillion. Total FDI worth of Rp111.7 trillion jumped 12 per cent from 9M 2016 and Domestic Direct Investment Rp64.9 trillion up 16.8 per cent from previous year.

Based on origin countries, the higher investment in 9M of this year coming from Singapore $6.1 billion, followed by Japan $4.0 billion, China $2.7 billion, United States $1.5 billion, South Korea $1.4 billion and others $8.1 billion.

The most interested by investors in power (electricity, gas and water); housing, industrial and office estates; metal, machinery and electronic industry; mining and pharmaceutical and chemical industry.

For the H2, Thomas worried the consumer purchasing index declining could give impact to the investment achievements in this year. But, He is still optimistic with the government effort to ease investment climate will drive investors invest in Indonesia.

US$1: Rp13,500

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