Investment Commitments Up 119% in January

Jakarta (Antara Bali) - The Capital Investment Coordinating Board (BKPM) recorded a 119 percent increase in investment commitments year-on-year to Rp206 trillion in January, 2016.

BKPM chief Franky Sibarani said the increase reflected high confidence of investors in doing business in Indonesia.

"The investment climate is still good in general as indicated by the investment commitments and principle licenses that rose 119 percent in value to Rp206 trillion. This is a good signal at the start of the year," Franki said.

Investment commitments in January included Rp38 trillion in domestic investment (PMDN) or an increase of 261 percent and Rp168 trillion in foreign investment (PMA) or an increase of 101 percent year-on-year.

Franky said one of the main drivers of investment commitments in January is political stability and favorable security in the country.

He pointed to quick handling of Januarys terror attack in Jakarta.

Other factors included the countrys success in managing positive economic growth especially in the second half of 2015, and the focus, which was considered positive in development as well as reform in investment policy, he said.

Simplification in licensing procedure that takes only three minutes to issue investment license also contributed to the significant increase in investment commitments in January, he added.

Seven companies planning to invest a total of Rp31.8 trillion or 15 percent of the total investment plans used the three-hour licensing facility, he said.

Singapore accounted for the largest part of the investment commitments with investment plan of US$7.5 billion, followed by China accounting for US$2.6 billion, South Korea US$280 million, Japan US$132 million and Malaysia US$105 million.

"Investment commitments by Singapore rose 413 percent year-on-year," Franki said.

A strong growth of 164 percent yoy was recorded in investment commitments in the manufacturing sector to Rp90 trillion in January.

"The manufacturing sector accounted for 43 percent of the total value of investment commitments," he added. (WDY)