TEMPO.CO, Jakarta - The government said that some of this year's investment plans failed to start; hindered by the delays in location destinations' spatial planning revision. Local spatial plans and what lacks thereof had also created problems in the development of industrial zones and special economic zones.
"One investment plan with a potential value of Rp20 trillion had failed to materialize because Riau Province has not finished its spatial planning revision," Franky Sibarani, head of the Investment Coordinating Board (BKPM), said yesterday.
Franky said the lack of rules on spatial planning has caused overlaps in land usages. As a result, projects are delayed and investment potentials are lost.
From December 2015 to April 2015, there are nine investment projects worth Rp10.11 trillion that have not started.
So far this year, only 52.1 percent of industrial zones investment has been actualized. This means that the investment that materialized only reached Rp2.9 trillion of the targeted Rp6.1 trillion.
As of May this year, the total value of investment in Indonesia reached Rp124.6 trillion, up 16.9 percent year-on-year (yoy). The figure accounts for 24 percent of this year's investment.
Franky is confident that this year's investment target will be met, given how Indonesia has been experiencing investment uptrends over the past five years. A recent report by the World Investment Forum said that the value of foreign investment in Indonesia increased by 20 percent n in 2014.