Indonesia Sees Sharp Rise in Investment from China in 2016
26 January 2017 11:46 WIB
TEMPO.CO, Jakarta - M. Azhar Lubis, deputy for investment control of the Investment Coordinating Board (BKPM), said that China ranked second in the list of largest foreign direct investors in 2016. China has never reached that position before.
According to Azhar, investments from China were mostly made in the construction of smelters and power plants. “Mostly in those projects,” Azhar told Tempo Wednesday at the BKPM building in Jakarta.
The BKPM noted that direct investments from China in 2016 reached US$2.7 billion, whereas the previous year’s figure was US$600 million.
Azhar added that realized investments from China also include those of property and plantation sector. “Also investments in the accommodation sector, such as hotels,” Azhar Lubis said.
The BKPM chairman Thomas Lembong confirmed the sharp increase in investments from China. “China is Asia-Pacific’s largest economy, even though its investments are lower than Singapore.”
Data from the BKPM show that China ranked second in the list of foreign direct investors, below Singapore and above Japan, the United States and Hong Kong.
Between 2011 and 2016, China had only broken into the big five of the list of largest foreign direct investors in Indonesia. Previously, the list was dominated by Singapore, Japan, the U.S. and South Korea.
DIKO OKTARA
