Investment board: Foreign investment remain dominant

"We will continue to redress the ratio with PMA 60 percent and PMDN 40 percent in the next five years," BKPM chief Franky Sibarani said.
Jakarta (ANTARA News) - The Capital Investment Coordinating Board (BKPM) said foreign investments (PMA) have remained the largest contributors to the total investment in the country, but the domination has tended to decline.

In 2015, realization of PMA is predicted to reach Rp386 trillion or 65 percent of the total investment target of Rp594.8 trillion with domestic investments (PMDN) making up the remaining 35 percent or Rp208.4 trillion, BKPM chief Franky Sibarani said in a statement.

"We will continue to redress the ratio with PMA 60 percent and PMDN 40 percent in the next five years," Franky said.

In comparison with investment realization in the first nine months of 2015, the domination of PMA declined slightly, he said.

In the January-September period, PMA contributed Rp266.8 trillion or 66.7 percent to the total investment.

Franky said the reality at present both in interest and readiness is favorable to achieve the target in the composition of PMA and PMDN.

"Foreign investors are quite enthusiastic in doing business in the country notably those from Asia. Around 48 percent of realization of investment projects from 2010 to September, 2015 were from other Asian countries," he said.

PMA is also dominant in investment plans received by BKPM. BKPM estimated that foreign investment plans reach Rp1,087 trillion or 64.7 percent of the total plans in 2015 down from 74.1 percent in 2014.

Domestic investment plans were estimated to reach Rp593.6 trillion or an increase of 35,3 percent from Rp335.7 trillion in 2014 or 26.9 percent of the total plans of investment.

The investment of Rp594.8 trillion predicted in 2016 would include Rp302.6 trillion in Java and the rest or Rp292.2 trillion (49.1 percent ) in other Indonesian islands.(*)

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