Foreign investment up 30.3 pct in first quarter

23 April, 2012 | Source: Antara News

Jakarta (ANTARA News) - Foreign investment rose 30.3 percent in the first quarter of 2012 to Rp51.5 trillion, compared with Rp39.5 trillion for the same period in the previous year.

"The rise of foreign direct investment has been the highest in Indonesia`s foreign investment history, on a quarterly basis," said Gita Wirjawan, head of capital investment coordinating board (BKPM), here on Monday.
He noted that the increase in foreign investment was driven by various policies that were made to spread investments across the country`s regions.

Gita, who is also the trade minister, said the increase in foreign investment in the past quarter was thanks mainly to South Korea and Japan.

Two South Korean companies that have heavily invested are Posco - in a steel plant in Cilegon, West Java, with an investment worth about US$6 billion for the next three to five years - and Hankook, with an investment of around US$1.3 billion for the next two to three years.

"They are more courageous in entering strategic sectors," he stated.

Gita, however, called on all parties to not rejoice too early because there were still a lot of external factors that could affect realization of foreign investment until the end of this year.

"It must be admitted that foreign investment performance has been increasing right now, but economic conditions in various regions like Europe and the US have not yet fully recovered. So, hard work is still needed to improve the investment climate and ensure that investment prospects in Indonesia are bright," he said.

Based on the BKPM data, the five biggest foreign investments in the first quarter of 2012 came from Singapore (US$1.2 billion), Japan (US$0.6 billion), South Korea (US$0.5 billion), British Virginia Islands (US$0.3 billion), and the Netherlands (US$0.3 billion).

Meanwhile, five sectors that have attracted the highest investments are mining (US$1.1 billion), warehouse transportation and telecommunication (US$0.8 billion), food crops and plantations (US$0.5 billion), basic metal, metal goods, machinery and electronics industries (US$0.5 billion), and transportation equipment and other transportation industries (US$0.4 billion).

The five biggest foreign investment locations are Jakarta (US$1.2 billion), West Java (US$1.1 billion), Banten (US$0.6 billion), South Sulawesi (US$0.4 billion), and West Nusa Tenggara (US$0.4 billion).

The investments helped in absorption of 358,385 more workers  250,711 in foreign investment projects and 107,674 in domestic investment projects.

 

The Indonesian government plans to issue savings sukuk (Islamic bonds), series ST007, to expand the base of retail investors in the domestic financial market and finance green projects in the state budget (APBN).
President Joko Widodo recently signed a regulation specifying the procurement and immunization schedule for the COVID-19 vaccine for Indonesia, which has been battling the deadly disease since March 2 this year.
President Joko Widodo on Wednesday said the coronavirus pandemic has reminded the nation and the state of the importance of science and technology.
Indonesian Foreign Affairs Minister Retno Marsudi offered her condolences and sympathies to the families of the victims of the explosion that rocked Beirut in Lebanon on Tuesday evening.
Indonesia is working with South Korea to develop a vaccine for the novel coronavirus disease, in addition to collaborating with China.
Indonesia′s economy will start to open and recover from the COVID-19 crisis in August this year, the World Bank′s Country Director for Indonesia, Satu Kahkonen, stated on Thursday.
Address: 1068 Budapest, Városligeti fasor 26. | MAP |
Phone: (+36-1) 413 3800 Fax: (+36-1) 322 8669
E-mail: embassy@indonesianembassy.hu