The Investment Coordinating Board (BKPM) has announced that the investment realization in the first quarter (January-March) of 2017 reached Rp165.8 trillion. This figure rose 13.2% over the same period in 2016 amounting to Rp146.5 trillion.
During Q1/2017, the domestic investments (PMDN) reached Rp68.8 trillion, up 36.4% over the same period in 2016. The foreign direct investments (FDI) reached Rp97 trillion or up 0.94% compared to the first quarter of 2016.
Head of Investment Coordinating Board (BKPM) Thomas Lembong said he was optimistic this year’s investment realization target of Rp678.8 trillion would be within the reach.
“Looking at the data of PMA and PMDN realization for the first quarter of 2017, it shows that the interest to invest in Indonesia remains high and we are increasingly optimistic that the 2017 target will be achieved,” Tom said in a press conference at BKPM Building, Jakarta, on Wednesday (4/26).
The investments in the first three months of 2017 generated employment for 194,134 people, consisting of 67,807 for domestic investment projects and 126,327 workers for PMA.
The investments outside Java increased to Rp75.3 trillion or 45.4% of total investment. The realization of investments in Java amounted to Rp90.5 trillion or 54.6% of total investment.
Based on the business sector, most investments go to the mining sector (14.2%), food industry (11.1%), transportation, warehouse and telecommunications (11.1%), electricity, gas and water (10.1%), basic metal industry, metal goods, machinery and electronics (9.2%).
The top five countries of PMA are Singapore (28.2%), Japan (19.2%), China (8.2%), United States (8.2%), and South Korea (5.8%).