The first quarter of 2018 has been a highlight of Indonesia investment since it showed a rise to IDR 185.3 trillion. The percentage of investment in Indonesia increased 12.4 percent for foreign direct investment or called as FDI. On the other side, for domestic direct investment or DDI rose 11 percent year-on-year to IDR 76.4 trillion. This data brings the optimism that the target of IDR 765 trillion annual direct investment is possible to achieve. The target of full-year investment is estimated to reach around IDR 477.4 and 287.6 for FDI and DDI respectively.
Investment Realization Based on Origin Country
Based on Indonesia’s Investment Coordinating Board (BKPM), Indonesia investment is dominated by South East Asia countries like Singapore, Japan, South Korea, China, and Hong Kong. The biggest investor held by Singapore reaching around USD 2.6 billion. Head of BKPM Thomas Lembong said that Indonesia received investment from India trough Singaporean as well.
The second position occupied by Japan with USD 1.4 billion which accounted by around 16.7 percent of the total, then followed by South Korea and China with USD 0.9 and USD 0.7 billion respectively. The last position comes from Hong Kong which its investment worth around USD 100 million. Not only by Asia countries, is around 24.5 of the percentage owned by other countries from Europe, America, Africa, and Australia.
Sector-Based Investment Realization
The foreign countries put their money in for several distinct sectors. From a foreign direct investment or FDI for instance, the most interesting sectors were housing, office building, and industrial place. It dominated the percentage for around 23.1 percent. Besides, the other sectors were the industry of metal, machinery as well as electronic which contributed USD 1.4 billion. These were followed by electricity, gas, and water supply in 10.5 percent. Then, the least sectors which contributed to less than 10 percent were mining and crops and plantation.
Some investments coming from FDI were different with DDI sectors. Generally, in domestic direct investment, the percentages were mostly similar which the highest reached by construction sector accounted for 17.1 percent. Crops and plantations follow it as the second position and electricity, gas, and water in the last. Besides, in DDI, the investment also went on to transportation, warehouse and telecommunication, and food industry.
The Comparison of Investment Geographically
Investors, whoever they are, will invest the money to gain the profit as much as possible. To meet this goal, they will manage to contribute it to their targeted market which mostly it is centrally invested in Java. This condition supported by the condition that Java as the most occupied island compared to other places in Indonesia.
Furthermore, the gap in investment between Java and outside Java is getting wider in Q-1 2018 compared to Q-1 2017. During the first quarter of 2018, the Java Island has contributed well over 50 percent while outside Java was around 40 percent. Consequently, the government must overcome this problem so that an equal investment can be developed in all places of Indonesia.
The percentage of investment in Indonesia has shown a well-developed rise coming from not only domestic but also foreign countries. Then, being updated by this kind of news is essential for people especially for those interested in investment. Therefore, letting this website as the main source is one of the answers as no news will be missed.
