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Indonesia’s investment growth up 16.8% in Jan-Sep 2014
Source：Ringier Trade Media
Date Published：12/31/2014 04:12:17 PM
Data indicates continuing high investors’ confidence post peaceful presidential election and new government transition in the world’s fourth most populous nation of 240 million people
THE Indonesian Investment Coordinating Board (BKPM) announced a USD 35.6-billion investment realization for period in January–September 2014 or 16.8% increase from comparable period in 2013. Meanwhile, a record high value of Rp. 119.9 trillion (USD 11.4 billion) investment was reported for Q3 2014. The data indicates continuing high investors’ confidence post peaceful presidential election and new government transition in the world’s fourth most populous nation of 240 million people.
Over the period January – September 2014, the USD 35.6 billion (B) investment can be broken down into:
- Foreign Direct Investment (FDI) - $23.7B, up 14.6% from comparable period in 2013;
- Domestic Direct Investment (DDI) - $11.9, up 21.6% from comparable period in 2013;
- Singapore remains top FDI contribution with 1,063 projects valued at US$ 4.9 B while the U.S. is in the fifth with 131 projects valued at US$ 965.9 B; and
- Labor absorption gained 960,336 people (725,836 FDI; 234,497 DDI).
DDI realization based on five leading sectors include:
- Electricity, Gas & Water Supply (Rp 34.0 T);
- Food Industry (Rp 14.0 T);
- Transportation, Warehouse & Telecommunication (Rp 9.8 T);
- Real Estate, Industrial Estate & Office Building (Rp 9.6 T); and
- Chemical & Pharmaceutical Industry (Rp 9.0 T).
FDI realization based on five leading sectors:
- Mining (US$ 3.8 B);
- Transportation, Warehouse and Telecommunication (US$ 2.8 B);
- Food Industry (US$ 2.5 B);
- Chemical & Pharmaceutical Industry (US$ 2.0 B); and
- Food Crops & Plantation (US$ 1.6 B).
In terms of investment location, project distribution in Java Island reached Rp 193.3 trillion (56.4%), and outside Java was Rp 149.4 T (43.6%), a 19.8% increase from comparable period in 2013 (Rp 124.7 T).
The President Jokowi-led administration is committed to push structural reforms and to prioritize sustainable infrastructure development by expanding inter-island connectivity.
Franky Sibarani, the newly appointed chairman of BKPM, is expected to focus on a more efficient and transparent One Stop Investment Service in order to ensure increased outputs.
The good performance during the first nine months of 2014 indicates that the investment growth of 16.8% provides optimism that this year's target of 15% growth will not only be achieved, but also reach the 2015 target of 15-18 percent.