"Malaysia has become the focus of investment marketing as we look at the realization trend and its commitment is likely to increase," the Head of BKPM Franky Sibarani said.
Jakarta (ANTARA News) - The Indonesian Capital Investment Coordinating Board (BKPM) will focus on targeting investment from Malaysia and Singapore since its proportion has reached 97 percent of the total investment realization among ASEAN countries.

"Malaysia has become the focus of investment marketing as we look at the realization trend and its commitment is likely to increase," the Head of BKPM, Franky Sibarani said in a written statement received by ANTARA on Thursday.

As is being reported by BKPM, Malaysian investment realization for 913 projects in 2015 amounted to US$3 billion or increased by 73 percent, compared with the previous year.

Similarly, the value of Malaysias investment commitment during the same period reached US$5.5 billion or increased by 148 percent, compared with 2014s achievement, which was pegged at US$2.2 billion.

"Singapore has long been a source of investment for Indonesia, and that is why the BKPM representative office in Singapore will focus on overseeing this marketing strategy," Franky stated.

Not only Singapore, BKPM has also added to its count of marketing officers to attract more investors from Malaysia.

According to BKPMs data, the 2015 ASEAN investment realization in Indonesia increased by 15 percent and was valued at US$9.1 billion, up from the US$7.93 billion in 2014.

While in terms of investment commitment, the ASEAN member countries contribution reflected a 79 percent increase to US$22 billion from the US$12.3 billion in the previous year.

Based on the same data, the value of investment coming from Singapore reached US$5.9 billion for 3,012 projects, while the commitment of Singapore investment rose 68 percent to US$16.3 billion.

In terms of competition to attract investment, the competitors of Indonesia were Thailand, Vietnam, and Myanmar.

These three countries are considered as destination countries for those who have not invested in Indonesia.

In 2015, the Financial Times published data pointing out that Indonesia had received 34 percent of the global potential investment coming to ASEAN, followed by Vietnam (19 percent), Malaysia (12 percent), and Myanmar (9 percent).

Franky also explained that BKPM would seriously encourage an outward investment for countries, such as Cambodia, Laos, Myanmar, and Vietnam.

The measures adopted to expand Indonesian investment in other countries is closely related to the efforts of winning the competition, as well as taking advantage of a great opportunity in the era of the ASEAN Economic Community (AEC).

"We are currently formulating a strategy to encourage outward investment from Indonesia to other ASEAN member countries, in which four countries, Cambodia, Vietnam, Laos, and Myanmar, have been chosen as the focus for study," Franky said.(*)

Editor: Heru Purwanto
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