Indonesia sets higher investment target in 2019

Economy, Vietnam, Vietnam Finance News
Chief of BKPM Thomas T Lembong (left). (Source: ANTARA News)

Jakarta (VNA) – Indonesia is
optimistic that it will be able to attract more investment this year although
legislative and presidential elections will take place simultaneously in April
2019.

Based on observation over the past 15 years, the
Indonesian government has found out that investment usually slows down before
elections.

Thomas Trikasih Lembong, head of the Investment
Coordinating Board (BKPM), has expressed his optimism that investment would
rebound after the April elections, owing to high market expectation on
stability and continuity.

In 2018, investment in Indonesia reached only 94.3 percent of the target set in
the national mid-term development plan, but rose 4.1 percent against the
previous year. The investment inflows mainly landed in West Java, Jakarta,
Central Java, Banten and East Java.

The agency has set a target of luring 792.3 trillion Rp (56 billion USD) in
investment in 2019, higher than 721.3 trillion Rp (51 billion USD) in 2018. The
target has covered 55 percent of foreign investment and 45 percent of domestic
investment.

The five largest foreign investors in Indonesia
are Singapore (9.2 billion USD, 31.4 percent); Japan (4.9 billion USD, 16.7
percent); China (2.4 billion USD, 8.2 percent); Hong Kong (2 billion USD, 6.8
percent); and Malaysia (1.8 billion USD, 6.2 percent).

In the last quarter of 2018, domestic investment reached 86.9 trillion Rp, up
28.6 percent year-on-year, and investment activities created 255,239 jobs.

The agency issued 1,239 business registration numbers (NIB) per day during the
period of January 2-11, 2019, with a total of 8,895 NIB of domestic investment,
541 NIB of small and medium scale enterprises (SMEs), and 486 NIB of foreign investment.

The largest domestic investment was recorded by the food industry at 39.1
trillion Rp, followed by the chemical and pharmaceutical industry at 13.3
trillion Rp.

The largest foreign investment went to the metal and non-machinery industry at 2.2
billion Rp, followed by the chemical and pharmaceutical industry (1.9 billion
Rp), and the food industry (1.3 billion Rp).-VNA

QBCA

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