Jakarta (Antara Bali) - Investment commitments increased by 167 percent to Rp355 trillion in February 2016, according to Investment Coordinating Board (BKPM) here on Wednesday.
The enhanced commitments were a result of principle permits for domestic investment (PMDN) reaching Rp75 trillion, an increase of 66 percent, and principle permits for foreign investment (PMA) worth Rp281 trillion, up by 218 percent from the same period last year.
"Investment commitments are growing positively and the target of realizing investments worth Rp3,500 trillion in 2014-2019 was still on track," BKMP chief Franky Sibarani said.
He claimed the achievement was on account of the improvements made in the licensing service.
These improvements included shortening the licensing process to only three hours. Besides, this facility has been recently extended to cover four infrastructure sectors in conjunction with an ease of direct construction investment scheme (KLIK) launched at the State Palace on February 22, 2016.
In February 2016, seven companies were recorded as having benefited from the three-hour licensing service for investments, worth Rp9.1 trillion. Collectively, these companies absorbed 5,762 workers.
The investors came from China (2), British Virginia Island ( (2 joint ventures), Taiwan, Singapore and South Korea.
Based on the countries of origin, Franky said the US was ranked first in terms of amount of investment commitment, that reached US$16.2 billion.
Next came China with investment commitments worth US$395 million, British Virginia Island at US$323 million, Singapore at US$302 million and South Korea US$292 million, he said.
With regards to sectors, Franky said investment commitments in the manufacturing industries increased by 20 percent to Rp235 trillion, when compared to the same period earlier (February last year).
"Commitments in the manufacturing industries comprise 66 percent of the total investments in all sectors," he said.
As for the location of investment commitments, he said most of these -- worth Rp316 trillion or about 77 percent of total investment commitments -- were for projects outside Java.
Investment commitments within Java were recorded at Rp39.3 trillion, he said.
"Sulawesi is the biggest contributor to investment commitments reaching 66 percent, or Rp235 trillion, followed by Sumatra at Rp71.9 trillion," he said.
Java, with investment commitments worth Rp39.3 trillion, came in third, followed by Kalimantan at Rp5 trillion, Papua and Maluku at Rp3.4 trillion and Bali and Nusa Tenggara at Rp0.5 trillion.
"The governments support is expected in order to ensure that the commitments made by investors turn into reality," he said.(WDY)
