Rise in Investment During First Half of 2006
Thursday, 06 July, 2006 | 15:19 WIB

Tempo Interactive, Jakarta: According to the Capital Investment Coordinating Board (BKPM), the realization of investment during the first half of this year reached Rp45.24 trillion.

This is a rise of 12.12 percent compared to the figure of Rp40.35 trillion recorded in the same period last year.

Muhammad Luthfi, Head of BKPM, said that the majority of the realized investment came from foreign investment, amounting to Rp34.05 trillion in 487 projects.

The remaining Rp11.9 trillion was from domestic investment and covered a total of 96 projects.

“The investment growth of 12.12 percent is healthy. This is twice as high as the 2005 investment growth if compared to the previous year,” he said yesterday (5/7).

Luthfi emphasized BKPM is targeting that by the end of year realized investment growth will reach 15.2 percent.

“We are optimistic that we can achieve this and more,” he said.

The reason for this is that many foreign investors have showed their interest as regards investing in Indonesia.

One example is in the automotive industry.

“In the automotive industry there are two investors. TVS and Bajaj have invested in Indonesia.”

Luthfi went on to say that during this semester, the most interesting sectors for foreign and domestic investors have been metal, machinery and electronic industries.

In those sectors, investment from foreign investors reached US$812.8 million, and from domestic investors Rp3.144 trillion.

Other significant realized foreign investments were in the paper and printing industries amounting to US$438.4 million, the textile industry US$372.6 million, vehicles and other means of transportation US$316.3 million and the trade sector US$299.3 million.

In terms of realized domestic investments, significant sectors are: food industry amounting to Rp2.055 trillion, services Rp1.607 trillion, plantation and products Rp1.51 trillion, transportation, storehouse and communications Rp817.4 billion.

RR Ariyani
Jawawa.net: Indonesian Business and Investment News Aggregator