BKPM: Foreign and Domestic Investment Realization Increases 18.7% in Q4 2012
The Investment Coordinating Board (BKPM) of Indonesia announced today that investment realization figures for domestic and foreign direct investment in the fourth quarter of 2012 increased by 18.7 percent to IDR 83.3 trillion (US $9 billion) compared to the same period in 2011 (when it was IDR 70.2 trillion). For the whole year of 2012, the cumulative of investment realization is IDR 313.2 trillion, implying that it had surpassed the government target of IDR 283.5 trillion.
The chairman of the BKPM said: "A series of improvement of investment climate in both central and local government’s services, such as the integrated investment services, and various incentives for investment as well as an integrated promotion have been responded positively by domestic and foreign investors, marked by a significant increase of domestic and foreign investment realization in 2012.”
| Q4 – 2012 | Q4 – 2011 | Growth | |
| Domestic Investment |
26.5 | 24.0 | 10.4% |
| Foreign Investment |
56.8 | 46.2 | 22.9% |
| Total Investment | 83.3 | 70.2 | 18.7% |
in trillion IDR rupiah
The five largest sectors in terms of domestic direct investment realization in Q4 2012 were:
| Sector | Investment Value |
| Transport, Storage and Communication |
IDR 4.9 trillion |
| Food Industry |
IDR 3.4 trillion |
| Food Crops and Plantation | IDR 3.4 trillion |
| Paper and Printing Industry | IDR 2.6 trillion |
| Construction | IDR 2.4 trillion |
Foreign direct investment realizations focused on:
| Sector | Investment Value |
| Metal, Machinery and Electronic Industry |
US $1.2 billion |
| Mining |
US $1.1 billion |
| Transport, Storage and Communication | US $0.9 billion |
| Food Industry | US $0.6 billion |
| Motor Vehicles & Other Transport Equipment Industry | US $0.5 billion |
As usual throughout Indonesian history, investments were mostly realized on Java, Indonesia's most populous island. About 64 percent of total investments in Q4 2012 were on this island. Apart from Java, other regions that saw large investments were Central Kalimantan, Riau (Sumatra) and Papua.
The majority of foreign direct investment realizations came from Singapore (US $1.4 billion), South Korea (US $0.7 billion), Japan (US $0.7 billion), USA (US $0.5 billion) and Mauritius (US $0.4 billion).