Foreign, domestic investment in Indonesia at 22.3% of year’s target
Indonesia has achieved 22.3% of its domestic and foreign direct investment targets for 2011 in the first quarter with a total Rp 53.6 trillion (US$6.197 billion) realized, according to figures released by the Indonesia Investment Coordinating Board (BKPM). Of the total, Rp 14.1 trillion is domestic investment and Rp 39.5 trillion is from foreign sources.
That’s a 110.4% increase on domestic investment totals and a 11.8% increase on foreign direct investment for the same period in 2010.
“The investment realization on the first quarter/2011 shows a significant improvement, compared to that of the same period on 2010. This improvement is seen from the increased distribution and amount of investment flows to the outside of Java and the number of domestic direct investment,” said BKPM Chairman Gita Wirjawan. Projects located outside Java have seen a 24% increase in investment.
The domestic sectors benefiting most from the increases are Transport, Storage and Communication (Rp 2.7 trillion; 6 projects); Non Metallic Mineral Industry (Rp 2.4 trillion; 12 projects); Electricity, Gas and Water Supply (Rp 1.6 trillion; 12 projects); and Food Crops and Plantation (Rp 1.4 trillion; 54 projects).
Biggest beneficiaries of foreign investment are Mining (US$1.0 billion; 79 projects); Electricity, Gas and Water Supply (US$0.6 billion; 15 projects); Transport, Storage and Communication (US$0.5 billion; 35 projects); Food Crops and Plantation (US$0.4 billion; 74 projects); and the Food Industry (US$0.3 billion; 61 projects).
The five largest foreign investors in Indonesia have remained constant: Singapore (US$1.1 billion); United States (US$0.4 billion); Japan (US$0.3 billion); British Virgin Islands (US$0.2 billion); and the United Kingdom itself (US$0.2 billion).
BKPM said the increases showed even more confidence in Indonesia’s growth and economic policies, which would in turn help the investment climate by improving services for investors at national and local levels.
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