Foreign Investment Slow on Realization
16 June 2015 12:06 WIB
TEMPO.CO, Jakarta – Foreign investments that have been planned since five years ago is still low on realization. According to the Investment Coordinating Board (BKPM), out of 100 foreign investment projects planned for 2010 until March 2015, only 36.73 percent has been implemented.
Thus, the value of investments that have been realized is only Rp80.701 trillion, below the initial plan of Rp219.66 trillion.
According to BKPM chief Fanky Sibarani, these projects have obtained the principle licenses for foreign direct investment (FDI). However, their implementation is hampered by issues such as land acquisition and power supplies.
Franky dismissed any saying that the slow realization is caused by a sluggish national economy. He asserted that investors that are not hampered by land or power supply problems are willing to speed up their investments. "Especially those in the export-based industrial sector and production of import substitutes," he said.
Despite the realization delay, Franky remains confident this year's investment target of Rp519.5 trillion will be met—even surpassed. He said that this year's actual investment will grow 14 percent over the previous year.
KHAIRUL ANAM
