Indonesia’s Investment Growth Has Increased 16.8% in January – September 2014

Loading media player...

NEW YORK--()--The Indonesian Investment Coordinating Board (BKPM) announced in October a US$ 35.6 billion (B) investment realization for period in January–September 2014 or 16.8% increase from comparable period in 2013. Meanwhile, a record high value of Rp. 119.9 trillion or equal to US$ 11.4 billion investment was reported for Q3 2014. The data indicates continuing high investors’ confidence post peaceful presidential election and new government transition in the world’s fourth most populous nation of 240 million people.

January – September 2014 STATISTICS:

  • Investment Realization in Indonesia - $35.6 billion (B).
  • Foreign Direct Investment (FDI) - $23.7B, up 14.6% from comparable period in 2013.
  • Domestic Direct Investment (DDI) - $11.9, up 21.6% from comparable period in 2013.
  • Singapore remains top FDI contribution with 1,063 projects valued at US$ 4.9 B while the U.S. is in the fifth with 131 projects valued at US$ 965.9 B.
  • Labor absorption gained 960,336 people (725,836 FDI; 234,497 DDI).

The President Jokowi-led administration is committed to push structural reforms and to prioritize sustainable infrastructure development by expanding inter-island connectivity. The good performance during the first nine months of 2014 indicates that the investment growth of 16.8% provides optimism that this year's target of 15% growth will not only be achieved, but also reach the 2015 target of 15-18%.

To ensure increased outputs, the newly appointed Chairman of BKPM, Franky Sibarani, focuses on a more efficient and transparent One Stop Investment Service through streamlining permits and license procedures across government levels as mandated by Presidential Regulation No.97/2014.

January – September 2014 SECTORS AND LOCATIONS

1. DDI realization based on five leading sectors:

  • Electricity, Gas & Water Supply (Rp 34.0 T);
  • Food Industry (Rp 14.0 T);
  • Transportation, Warehouse & Telecommunication (Rp 9.8 T);
  • Real Estate, Industrial Estate & Office Building (Rp 9.6 T);
  • Chemical & Pharmaceutical Industry (Rp 9.0 T).

2. FDI Realization based on five leading sectors:

  • Mining (US$ 3.8 B);
  • Transportation, Warehouse and Telecommunication (US$ 2.8 B);
  • Food Industry (US$ 2.5 B);
  • Chemical & Pharmaceutical Industry (US$ 2.0 B); and
  • Food Crops & Plantation (US$ 1.6 B).

3. Projects’ distribution in Java Island reached Rp 193.3 trillion (56.4%), and outside Java was Rp 149.4 T (43.6%), a 19.8% increase from comparable period in 2013 (Rp 124.7 T).

------

The Indonesia Investment Promotion Center (IIPC) NY is BKPM US Office. As a government institution, we are responsible for bringing your business to Indonesia as we bring ours abroad, namely to the North and Latin America. We organize one-on-one sessions, business forums, as well as, exhibitions to attract Indonesia’s investment opportunities and potentials. We assist in permit/license issuance, meeting facilitation with relevant stakeholders, site visitation, etc.

Contacts

We’d love to hear from you. Please contact us:
Indonesia Investment Promotion Center
YOS HARMEN, 646-885-6600
Director IIPCNY
iipc.newyork@bkpm.go.id
www.bkpm.go.id

Contacts

We’d love to hear from you. Please contact us:
Indonesia Investment Promotion Center
YOS HARMEN, 646-885-6600
Director IIPCNY
iipc.newyork@bkpm.go.id
www.bkpm.go.id