JAKARTA (TheInsiderStories) - Singapore appears to continue to become a largest investor in Indonesia. So far this year, Singapore investors have shown commitment to invest US$2.1 billion in Indonesia, the Investment Coordinating Board (BKPM) said at the weekend.
In 2015, Singapore had realized $5.9 billion worth of investment with 3,012 projects, while its investment commitment in the year increased by 68 percent to $16.3 billion.
Singapore’s investment played important role in Indonesia, since the country had been ranked first on the list of top investor countries in Indonesia. Along with Malaysia, Singapore had been declared as priority countries for BKPM’s special investment marketing in Southeast Asia, in a bid to boost ASEAN investment realization.
The head of BKPM Franky Sibarani said in a press statement released on March 5 that based on BKPM investment marketing identification, the investment interest consists of $200 million worth of investment in the property sector, $1.5 billion worth of investment in the agriculture sector, $10 million of investment in plantation, $100 million of investment in industrial zones and $300 million worth of investment in information technology infrastructures.
Investment potential of the food and beverage industry in Indonesia attract investors to South Korea. Franky, who had just returned from his visit to Seoul, South Korea, said that he had met with South Korean investors will build two food and beverage manufacturers with total investment of $600 million.
“They are currently in the process to determine the location. When this alternative is selected locations around Banten or West Java and East Java to two factories eat and drink, “he stated.
Investment coming from South Korea last year totaled $1.2 billion grew by 7.6 percent from the same period the previous year. Since 2010-2015 the value of the investment coming from South Korea reached US $ 8 billion. During the period, the incoming sector is dominated by the metal industry sector reached 45 percent.
The agency also reported, investors from the UK and the Netherlands expressed interest to invest in Indonesia with a value of $370 million in the field of solar power plants that will take place in several locations across Indonesia, especially in the eastern parts of Indonesia as well as waste-to-energy projects in West Java.
“Investors expect to sign investment commitment with local partners or the state-run electricity producer (PLN) in April next year,” he said.
Investors from the UK are planning to build a 200 megawatt (MW) with an investment of $250 million, while investors from the Netherlands is also interested in participating in the auction of Legok Nangka waste project in West Java province with an estimated investment value approximately $120 million, which is scheduled to take effect in March.
Britain and the Netherlands in seven European countries are also the priority investment marketing targets of BKPM. Referring to BKPM data, the investment commitment of European countries in January 2016 reached Rp6.53 trillion ($494.70 million), up nearly 10-fold over the same period the previous year of Rp670 billion.
The increase in the European investment commitment continues the 2015 positive trend, in which the European investment commitments throughout 2015 increased 16 percent to Rp 37.3 trillion from 2014 of Rp 32.2 trillion. Investment commitment of several European countries in January 2016, among others the Netherlands amounted to Rp 4.38 trillion, Britain Rp1.12 trillion, Germany Rp 590 billion and French Rp123 billion.
While, BKPM representative office in Sydney, Australia, reported that investors from West Australia had expressed interest in improving maritime cooperation were such as cruise, shipyard and lobster cultivation sectors.with the government by investing $172 million.
Franky revealed that the investment comprised $30 million to develop a port terminal, $120 million worth of investment to operate Tanjung Siapi-Api port, $ 7 million of investment to expand cruise services, US$10 million to develop shipyard, and US$5 million worth of investment in lobster cultivation.
The BKPM recorded that Australia’s investment realization in 2015 was ranked 12th with investment value of $167 million and 443 projects. The total Australia’s investment realization in the period of 2010-2015 had reached US$2.07 billion.
BKPM identified the investment interest from US’s investors in the three sectors of the creative economy, coldstorage and health services reached $20 million, which is coldstorage with an investment of $15 million and from the health care sector with an investment of $5 million.
“For the creative economy sector they expressed interest to build an animation studio in Indonesia. They consider having a local partner in Batam, Bandung and Yogyakarta. For coldstorage first phase will be built is in Sumbawa. This processing plant will process the seafood before it is marketed in retail in the US. After Sumbawa they will build in Alor, and the Ceram and Sorong, “he explained.
As for health services, the US company will open a health care services with an alternative location in Lombok, West Nusa Tenggara and Bintan, Riau Islands. During this time many companies engaged in organic spices and is exploring expansion in the field of health services.
In 2015, the realizable value of US investment reached $893 million consisted of 261 projects with sectors dominated by mining. In terms of commitments recorded the entry of the commitment of US $ 4.8 billion consisting of 76 projects. (*)