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Private Investment Grows by 4 Percent in Q3 of 2016

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28 October 2016 07:50 WIB

Head of the BKPM Thomas Lembong. ANTARA FOTO

TEMPO.CO, Jakarta - The Investment Coordinating Board (BKPM) recorded that the third quarter of 2016 saw investment realization of Rp155.3 trillion, a 10.7 percent growth year-on-year. Overall, investment realization throughout January to September 2016 was Rp453.4 trillion, or a 13.4 percent growth year-on-year.

BKPM chief Thomas Lembong said that he is satisfied with the figure. According to Thomas, private investment growth amid sluggish economy show that investor confidence in Indonesia remain high. “Another piece of good news is that commodity investments have subsided, replaced by services and manufacture,” Thomas said yesterday in his office.

Throughout the year, chemical and parmaceuthical industries have attracted Rp 46.7 trillion of investment. Followed by food industry, basic metal industry, machinery, electronics, paper and printing industry and telecommunication transport service with Rp162.7 trillion.

Azhar Lubus, BKPM Deputy for Control and Supervision, did not deny that the government is having difficulty in attracting foreign investors. He pointed to the foreign investor growth stagnation which stood at 7.4 percent, similar to last year.

The government relies heavily on private investment to bolster economic growth. Finance Minister Sri Mulyani said that the 2016 and 2017 state budget (APBN) at her hand set infrastructure development as priority. “We have to keep on pushing for ease of doing business to gain trust,” Sri said.

ANDI IBNU




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