"The target of realized investment for 2016 at Rp694.8 trillion comprises foreign investment at Rp386.4 trillion and domestic investment at Rp208.4 trillion," BKPM Chief Franky Sibarani said in a press conference on "Investment projection 2016" here on Friday.
The target of foreign and domestic investment for 2016 rose 12.6 percent and 18.4 percent respectively as compared with the target for the previous year, he said.
Investment in the manufacturing sector is projected to increase by 17.2 percent to Rp313.6 trillion from the 2015 target. By September 2015, the realized investment in the sector reached Rp172.1 trillion.
"This is a great challenge. By September 2015 it was only that much. We predict it might have reached Rp230 trillion by the end of 2015. This means that it must increase by 50 percent in 2016," he said.
The agency predicted investment in extraction or raw material sector will increase to Rp97.6 trillion this year, a 12.3 percent increase compared with the target for 2015.
Investment in the infrastructure, trade and service sectors is expected to increase by 10.4 percent to Rp183.7 trillion from the 2015 target. By September 2015, realized investment in these sectors stood at Rp155.9 trillion.
"Our prediction is that it will have reached Rp180 trillion or more by the end of 2015. This implies that these sectors need the governments support and the BKPMs hard work to facilitate how investment in the manufacturing sector will increase," he said.