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China, Hong Kong Among Indonesia's Top Five Foreign Investors  

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29 July 2016 21:58 WIB

TEMPO.CO, JakartaThe Investment Coordinating Board (BKPM) has included China and Hong Kong as two of Indonesia's top five contributors to foreign direct investments throughout the first Semester of 2016.

The top five FDI contributors include Singapore (US$4,9 billion), Japan (US$2,9 billion), Hong Kong (US$1,1 billion), China (US$1 Billion), and the Netherlands (US$600 million).

"What's interesting from this set of data is the composition. Hong Kong and China did not use to investment in Indonesia in such amounts, but not they have managed to be in the top three and four position," said the BKPM's Deputy for Investment Control, Azhar Lubis in Jakarta on Friday, July 29, 2016.

According to Azhar , the increasing number of investment from China and Hong Kong is driven by the signifincantly increasing number of investment that both economies are directing towards mineral processing and enrichment. "There are other projects such as in Ketapang, East Kalimantan - the biggest investor in that project is China," Azhar said.

The newly-appointed head of BKPM, Thomas Lembong, said that he welcomes the increased investment from China - which he said could help address the trade deficit between both nations, which could reach up to US$15 billion annually.

"This might be my personal bias as I have only just seen all those data about our trade deficit with China, but seeing that the the capital flight is being balanced out by income from tourist spending, and investments, it could definitely help our economies reach an equilibrium," said Lembong.

"This is indeed, some very exciting news," Lembong said.

According to BKPM's data, the realisation of investments in the first semester of 2016 has totalled some Rp298,01 trillion - 50,1 percent of the national target of Rp594,8 trillion. Domestic investment (PMDN) reaches Rp102,6 trillion, while foreign direct investments totals Rp195,5 trillion.

ANTARA



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