Jakarta, July 30th 2019 – Indonesia Investment Coordinating Board (BKPM) announces the investment realization data that consist of Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI) for the second quarter (April – June) 2019, the total of investment reached Rp. 200.5 trillion, increased by 13.7% compared to the same period in 2018. Based on the total investment value, realization for the second quarter (April – June) contributes as much as 25.3% of the total investment target in 2019 which is Rp. 792 trillion. This, direct investment on this period has absorbed 255,314 Indonesian labors.
The investment realization in second quarter for DDI reached Rp. 95.6 trillion (increased by 18.6%) and FDI reached Rp. 104.9 trillion (increased by 9.6%) compared to the same period in 2018. Realization of Indonesian labor absorption in the second quarter of 2019 reached 141.153 labors from DDI projects, and 114.161 labors from FDI projects.
“If we take a closer look on investment realization data at the second quarter 2019, the growth is about 2.8% compared to the first quarter 2019. This is an indication that there will be an opportunity for an increase in investment realization after the first semester. This cannot be separated from political conditions that are growing stable after the official announcement of the elected President and Vice President of Republic Indonesia for the 2019-2024 period,” stated by Tom Lembong on the press conference held in BKPM, Jakarta, July 30th 2019.
In the period of January – June 2019 from the total investment (FDI & DDI) realization of Rp. 395.6 trillion which consist of total realization of DDI reached Rp. 182.8 trillion (increased by 16.4%) and total realization of FDI reached Rp. 212.8 trillion (increased by 4.0%) compared to the same period in 2018. The investment realization has absorbed 490,715 employees.
“Investment realization in the period of January – June 2019 is still dominated by infrastructure sector, such as transportation, telecommunication, power plant, and construction. Even though these projects are multi-years investment that require large amount of budget, they are consistently implement their investment plans in the midst of global economic turmoil that might interfere the national investment climate,” said Thomas.
In the period of January – June 2019, investment realization in Java Island is Rp. 218.1 trillion, increased by 5.8 % from investment realization in 2018 that reached Rp. 206.2 trillion, and investment realization outside Java Island is Rp. 177.5 trillion or increased by 14.2% from realization in 2018 that reached Rp. 155.4 trillion. Based on project locations (top 5) were: West Java (Rp. 68.7 trillion, 17.4%), Special Territory of Jakarta (Rp. 54.5 trillion, 13.8%), Central Java (Rp. 36.2 trillion, 9.1%), East Java (Rp 32.0 trillion, 8.1%); dan Banten (Rp. 24.6 trillion, 6.2 %).
”One more positive thing is the increase of realization outside Java Island which is relatively higher than Java Island during January – June 2019 compared to the same period in 2018. Hopefully this condition can be sustained to achieve a balanced growth for development in the region of Indonesia.”
FDI based on country of origin (top 5) were: Singapore (US$ 3.4 bilion, 23.9%); Japan (US$ 2.4 billion, 16.9%), China (US$ 2.3 billion, 16.2%), Hong Kong (US$ 1,3 billion, 9.2 %), and Malaysia (US$ 1.0 billion, 7.0 %).
On this occasion, Acting Deputy Chairman for Investment Monitoring and Implementation – BKPM, Farah Ratnadewi Indriani explained that “In the near future BKPM will upgrade the monitoring system of Investment License realization through the Online Single Submission (OSS) system that also include facilitation to investment issues encountered by investors during realization of their investments.”
BKPM also recorded the investment realization (DDI & FDI) for the second quarter of 2019 based on project location (top 5) were: West Java (Rp. 31.4 trillion, 15.6%), Special Territory of Jakarta (Rp. 29.8 trillion, 14.9%), East Java (Rp. 19.4 trillion, 9.7%), Central Java (Rp. 14.7 trillion, 7.4%), and Banten (Rp. 12.1 trillion, 6.0%). While the investment realization (DDI & FDI) for the second quarter of 2019 based on business sector (top 5) were: Transportation, Warehouse, and Telecommunication (Rp. 34.5 trillion, 17.2%), Electricity, Gas, and Water Supply (Rp. 23.7 trillion, 11.8%), Food Industry (Rp. 17.2 trillion, 8.6%), Food Crops and Plantation (Rp. 16.9 trillion, 8.4%), and Mining (Rp. 15.1 trillion, 7.5%).
The top five FDI based on country of origins were: Singapore (US$ 1.7 billion, 24.5%); Japan (US$ 1.2 billion, 17.5%); R.R. China (US$ 1.1 billion, 16.2%); Hong Kong, China (US$ 0.7 billion, 10.4%) and the Netherlands (US$ 0.4 billion, 5.3%).
The top five sectors of investment realization (DDI & FDI) in the period of January – June 2019 are: Transportation, Warehouse, and Telecommunication (Rp. 71.8 trillion, 18.0%); Electricity, Gas, and Water Supply (Rp. 56.8 trillion, 14.4%); Construction (Rp. 32.0 trillion, 8.2%); Food Industry (Rp. 31.9 trillion, 8.1%); and Housing, Industrial Estate, and Office Building (Rp. 31.0 trillion, 7.8%).