Indonesia's Investment Agency Targets 15% Investment Growth in 2016

Sibarani said the BKPM targets investment in Indonesia's manufacturing sector to increase by 17.2 percent year-on-year (y/y) to IDR 313 trillion (approx. USD $22.5 billion) in 2016. Meanwhile, investment realization in infrastructure, services and trade is targeted to rise by 10.4 percent (y/y) to IDR 183.7 trillion (approx. USD $13.2 billion) and investment in the raw resources industry is targeted to increase 12 percent (y/y) to IDR 97.6 trillion (approx. USD $7 billion).

Investment realization in Indonesia stands at a combined IDR 400 trillion in the first three quarters of 2015, equivalent to 77 percent of the BKPM's total 2015 investment target (IDR 519.5 trillion) and up 16.7 percent (y/y) from investment realization in the same period last year.

Foreign and Domestic Direct Investment in Indonesia (in IDR trillion):

	2014				2015
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Domestic Direct Investment	34.6	38.2	41.6	41.7	42.5	42.9	47.8
Foreign Direct Investment	72.0	78.0	78.3	78.7	82.1	92.2	92.5
Total Investment	106.6	116.2	119.9	120.4	124.6	135.1	140.3

 

	2011				2012				2013
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4
Domestic Direct Investment	14.1	18.9	19.0	24.0	19.7	20.8	25.2	27.5	27.5	33.1	33.5	34.1
Foreign Direct Investment	39.5	43.1	46.5	46.2	51.5	56.1	56.6	65.5	65.5	66.7	67.0	71.2
Total Investment	53.6	62.0	65.5	70.2	71.2	76.9	81.8	83.3	93.0	99.8	100.5	105.3

^{Source: Indonesia Investment Coordinating Board (BKPM)}

In order to attract more investment in the years ahead, the BKPM will raise efforts to improve the ease of doing business in Indonesia, Sibarani said. Regarding human resources and the streamlining of the investment process, the BKPM will seek to improve coordination between ministries, regional governments and private investors in an effort to boost competitiveness of the economy.

Indonesia rose 11 positions in the World Bank's Doing Business 2016 ranking. The nation improved from rank 120 in the (revised) 2015 index to 109 in the 2016 ranking on the back of reforms in investment licensing, online tax payments as well as financing incentives.

However, Indonesia is still ranked far below its regional peers such as Taiwan (11), Malaysia (18), Thailand (49), Vietnam (90), and the Philippines (103). Indonesia's Chief Economics Minister Darmin Nasution said part of the problem is the decentralized structure of Indonesia (democracy and decentralization were processes that started after the authoritarian Suharto regime fell in 1998). This means that the government previously tried to avoid making too much adjustments to investment policies in the regions (as this would conflict with decentralization).

Doing Business 2016 Ranking:

1. Singapore

2. New Zealand

3. Denmark

4. South Korea

5. Hong Kong

6. United Kingdom

7. United States

8. Sweden

9. Finland

10. Sweden

11. Taiwan

18. Malaysia

34. Japan

49. Thailand

84. China

90. Vietnam

103. Philippines

109. Indonesia

127. Cambodia

^{Source: World Bank 'Doing Business 2016'}

Ease of Doing Business in Indonesia:

Please note that the 2014 and 2015 rankings are revised rankings

Subject	2014 Rank	2015 Rank	2016 Rank
Starting a Business	158	163	173
Dealing with Construction Permits	150	110	107
Getting Electricity	101	45	46
Registering Property	112	131	131
Getting Credit	67	71	70
Protecting Minority Investors	43	87	88
Paying Taxes	158	160	148
Trading Across Borders	61	104	105
Enforcing Contracts	171	170	170
Resolving Insolvency	71	73	77

^{Source: World Bank's Doing Business Reports}

The BKPM is also reviewing the country's Negative Investment List (which lists sectors that are fully or partially closed to private foreign and/or domestic investment). Results of this review are expected to be announced in March or April.

‹ Kembali ke Berita Hari Ini

Bahas

Silakan login atau berlangganan untuk mengomentari kolom ini