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An infrastructure project in Jakarta, Indonesia. (Image via Lowy Institute)
Semester I Investment in Indonesia is Rp395 Trillion
Indonesia Investment Coordinating Board (BKPM) revealed the amount of investment for Indonesia in the first semester 2019. The number is Rp395 trillion, meaning the investment is increased as much as 9,4% compared to the first semester of last year, which was Rp361,6 trillion. They revealed Singapore invests US$3,4 billion in Indonesia, making them the biggest investor among other countries. Nonetheless, the list still goes on with Japan on the second place (US$2,4 billion), China on the third place (US$2,3 billion), Hong Kong on the fourth place (US%1,3 billion), and lastly Malaysia (US$1 billion).According to BKPM, the investment rose up after the April 2019 election. They stated that investment is always low during the election. However, for the last 15 years, the investment would always go up once the election period is over. BKPM also added that most of investors invest in infrastructure such as transportation, telecommunication, power plants, as well as constructions.
The other good news is that, the investment is not only on the Java island. Indonesia is big, and the country has a lot of islands. Previously, most of the investment goes to Java island. However, this year, investment goes to other islands as well.
In the future, the government will ask other countries to invest more in Indonesia. The one door licensing system is going to be used to do it, that’s why the government is currently working on it. If there is a problem with the investment, investors could reach the government using this system to find the best solution. Lastly, the head of BKPM hopes that this will continue to happen in the future.
Source: https://www.cnnindonesia.com/ekonomi/20190730121035-92-416706/bkpm-catat-investasi-semester-i-tembus-rp395-triliun
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