Kamis, 17 Desember 2015

INVESTMENT BOARD EXPECTED TO EXCEED TARGET

by Andi Abdussalam
          Jakarta, Dec 17 (Antara) - The realization of investment in Indonesia in 2015 is expected to reach Rp535 trillion-Rp540 trillion, up 16.6 percent from that in 2014, surpassing the Capital Investment Coordinating Board's (BKPM's) target set at Rp519.5 trillion.
        The forecast is based on the trend of realized investment, and it has been growing all through the year, BKPM Chief Franky Sibarani stated early this month (Dec. 1).
       "This means that this year, the investment level is 16.6 percent higher than that in 2014," Sibarani noted.
        BKPM deputy for capital service Lestari Indah remarked at the Bogor Economic Summit in Jakarta on Wednesday (Dec. 16) that the overall investment realization from January to September this year rose by 16.6 percent to reach Rp400 trillion. The value excluded the investment in the financial sector and the upstream oil and gas business.
         The BKPM noted that the investment realization worth Rp400 trillion in the January-September 2015 period accounted for 77 percent of the investment target set for this year at Rp519.5 trillion.



        "For 2015, we still stick to the initial target of Rp519.5 trillion. For 2016, based on the five-yearly plan, the investment target is set at Rp595 trillion," said Sibarani.
         He emphasized that greater efforts are needed to realize higher investment targets.
         "Therefore, we are preparing service products, which will offer facilities and lend certainty to investors," the BKPM head affirmed.
         The institution is providing a speedy three-hour service to investors to obtain eight types of licenses along with a land booking certificate.
         The eight licensing products include Taxpayer's Number (NPWP), Company Registration Identity (TDP), Producer Importer Identity (API-P), Customs Registration Number (NIK), Permit to Employ Expatriate (IMTA), and Expatriate Recruitment Plan (RPTKA).
          Besides increasing the realized investment, Indah pointed out that the level of committed investment has also increased. During the January-September 2015 period, the BKPM issued principle licenses worth Rp1,300 trillion, up 36 percent than the previous investment commitment.
         Based on data released by the BKPM, the value of investment realization in the infrastructure sector until the third quarter of 2015 reached Rp90.5 trillion, or up 12.4 percent, compared to that noted last year.
         Of the total investment in infrastructure, the transportation sector, warehouses, and telecommunications received Rp52.59 trillion, with projects totaling 505.
         The efforts made by the BKPM to achieve the investment target include organizing a roadshow in various cities and organizing activities, such as a regional investment potential show (GPID) and a regional investment forum. It is also introducing an Inland Free Trade Agreement (Inland FTA) scheme to boost investment.
         With intensive promotional efforts, the BKPM hopes to attract investment of some Rp27.8 trillion in Sulawesi, Rp75.2 trillion in North Sumatra, Rp75 trillion in Kalimantan, and Rp7.2 trillion in Maluku this year.
         The roadshow includes seminars and exhibitions on investment opportunities. Foreign diplomats and potential investors are among the invitees to the event.
         The BKPM also organized one-on-one meetings for investors during the roadshow. Business delegations from South Korea, Australia, Britain, Singapore, Japan, Taiwan, the United Arab Emirates, and the United States were expected to attend the meetings.
         The BKPM has projected an investment realization of Rp519.5 trillion in 2015. Some Rp282.6 trillion of the investment target is set for Java, Rp19 trillion for Bali and Nusa Tenggara, and Rp33.2 trillion for Papua.
         It was earlier reported that some Rp27.8 trillion of the investment will be made in Sulawesi, Rp75.2 trillion in North Sumatra, Rp75 trillion in Kalimantan, and 7.2 trillion in Maluku.
         In the meantime, the BKPM has set a target to attract Rp595 trillion in 2016.
         "Based on the five-yearly plan, the investment target is set at Rp595 trillion for 2016," Sibarani noted.
         The investment for next year is expected to boost the production sector and increase exports. Indonesia's export performance, which until August this year had slumped 10.23 percent compared to that in 2014, needs to be boosted by attracting more foreign investment.
         Therefore, the government has set a foreign investment target of Rp386.4 trillion in 2016, or about 53.9 percent of the total investment plan of Rp594.8 trillion in a bid to boost exports.
         "In order to help export-based industries, we need foreign investment. Of course, this will need coordination between the BKPM, the Industry Ministry, and the Trade Ministry," Trade Minister Thomas Lembong stated at a press conference last August.
         To this end, the BKPM has projected a bigger foreign investment. The BKPM chief noted that of the Rp594.8 trillion target set for 2016, some Rp386.4 trillion is expected to come from foreign investment, or about 53.9 percent, and Rp208.4 trillion from domestic investment.
         He explained that the secondary sector, or processing industries, is expected to contribute Rp313.5 trillion, or about 52.7 percent.
         The tertiary sector, which includes infrastructure, is projected to contribute Rp183.7 trillion, or 30.9 percent, while the primary sector, or commodities, is expected to contribute Rp97.6 trillion, or 16.4 percent.
         The BKPM is optimistic that investment will support economic transformation from a consumption-based to a production-supported economy.
        "The realization of investment that focuses on infrastructure and processing industries will support the creation of production-based economic fundamentals," he pointed out.
         In order to achieve its goals, the BKPM will maintain five sectors outlined as investment targets: infrastructure, agriculture, industry, maritime, and tourism.
         The investment board will increase the number of countries, which will become its investment focus. The nations on the BKPM's target list are the United States, Britain, Australia, the United Arab Emirates, and the Middle East countries.
         This is to add to the list of countries that had earlier become the investment focus: Japan, China, South Korea, Singapore, and Taiwan.
         "The BKPM will also monitor ongoing investment projects to ensure that they will enter their commercial production phases based on plans, so that they would have a greater impact on the economy," Sibarani remarked. ***3***(A014/INE)EDITED BY INE
(T.A014/A/BESSR/F. Assegaf) 17-12-2015 13:26:3

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