Foreign Investments Still Dominate RI
25 July 2014 16:56 WIB
TEMPO.CO, Jakarta - The investment realization in the first semester of 2014 was still dominated by foreign investments at Rp150 trillion [US$12.5 billion], accounting for 67.3 percent of the total amount. Domestic investments, meanwhile, only reached Rp72.8 trillion [US$6.1 billion] or 32.7 percent.
"However, the growth of domestic investments was higher at 20.2 percent than foreign investments’ 13.5 percent," Mahendra Siregar, the head of the Investment Coordinating Board (BKPM), said at his office on Thursday, July 24, 2014.
Singaporean companies are at present the largest investors in the country with total investments of US $3.4 billion, making up 23.8 percent of the total foreign investment value. Japan sits at second with US$1.5 billion, accounting for 10.8 percent.
Other countries investing in Indonesia were Malaysia with US$717,35, the United States with US$663.13 million and South Korea with US$654.75, comprising 5.0 percent, 4.6 percent and 4.6 percent, respectively. The rest contributed a total investment of US$7.3 million, accounting for 51.2 percent of the total value.
The manufacturing industry, Mahendra said, was the most appealing to foreign investors that lured US$6.7 billion (47.0 percent), followed by the service sector with a US$3.6 billion (25.4 percent) and the mining sector with US$2.7 billion (19.2 percent).
Mahendra added the crops and plantation sector absorbed a US$1.1 billion foreign investment (8.0) percent, and the fishery sector attracted US$0.03 billion (0.2 percent).
"The least attractive sectors [foreign investors] were forestry with US$0.02 billion, accounting for 0.1 percent, and farming with US$0.1 billion, contributing 0.1 percent," Mahendra said.
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