Investment predicted to exceed US$31 billion

Jakarta (ANTARA News) – The Capital Investment Coordinating Board (BKPM) said it is optimistic the investment target would be overshot this year.

BKPM chief Chatib Basri said investments by both foreign and and domestic investors are expected to reach at least Rp300 trillion (US$31.5 billion) this year exceeding the target of Rp283.5 trillion.

“In the first nine months of the year, investments already reached Rp229.9 trillion,” Chatib said here on Monday.

Increase in investments will be driven by growing imports of capital goods and investment commitments by a number of countries, Chatib said.

“Fairly strong economic growth recorded by Indonesia amid the global financial woes would also contribute to boosting investment in the country,” he said.

Domestic investments accounted for Rp65.7 trillion and foreign investments for Rp154.2 trillion of the total investments in the first nine months of the year, he said.

In the first three quarters of this year investments averaged more than Rp70 trillion peaking at Rp81.8 trillion in the third quarter.

Realization of domestic investment plan until September already reached 85 percent of the whole target of Rp76.7 trillion and foreign investment projects 79.4 percent of the target of Rp206.8 trillion .

Foreign investors still are more interested in base chemical, chemical and pharmaceutical industries, mining, transport , paper and paper product sectors.

Domestic investors are more interested in non metal mineral, food, textile, food crop , plantation and construction industries.

By locations, foreign investors want to venture mainly in Jakarta, West Java, West Kalimantan, Central Sulawesi and Riau.

Domestic investors prefer to invest in West Java, East Java, Central Java, Bali and East Kalimantan.

“Efforts to create equitable economic development and promote the role of domestic investors has been increasing ,” Chatib said.

Altogether, investment by domestic companies has increased substantially not only in Java but also in outer regions, he added. (*)
Editor: Heru