TEMPO.CO, Jakarta - Investment Minister or Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said investment in Indonesia was no longer monopolized and centered in Java since the third quarter of 2020.

“The majority investment shifted to outside Java reaching 50.5 percent in 2020, while in Java it was 49.5 percent,” said Bahlil in an online discussion in Jakarta, Wednesday, September 29.

Th minister said the investment value outside Java was recorded at Rp417.5 trillion from 54,994 projects, and the investment value in Java was at Rp408.8 trillion from 98,355 projects. This means, the investment realization last year reached Rp826.3 trillion.

Throughout January-June 2021, the investment proportion outside Java increased to 51.5 percent, while in Java at 48.5 percent.

According to Bahlil, Indonesia's investment realization in the first semester of 2021 reached Rp442.7 trillion or 49.2 percent of the target of Rp900 trillion. “The president asked us to increase the target from the Bappenas’ initial plan of Rp856 trillion,” he added.

He explained there were at least three factors that caused the national investment to no longer be centered in Java. They were the massive infrastructure developments during the first office term of President Joko “Jokowi” Widodo from Aceh to Papua, many industries were established near the sources of raw materials, and more attractive incentive systems provided by the government for investment outside Java.

“These are the government's strategy to boost economic equity through the creation of new economic zones with investment,” Bahlil concluded.

ANTARA