The implementation slowed in the second quarter of this year when there was only Rp176.3 trillion worth of projects implemented, an increase of 3.1 percent from the same period last year, Deputy for Capital Investment Control of BKPM Azhar Lubis said here on Tuesday.
The growth was also lower than it was in 2017 and 2016 in the same period. The implementation in the second quarter of 2018 was 4.9 percent lower than Rp185.3 trillion in the first quarter of the year, he said.
Azhar said domestic investment accounted for Rp80.6 trillion of the investment implemented in the second quarter of this year, and foreign investment accounted for rest or Rp95.7 trillion.
The domestic investment in the second quarter of 2018 rose 32.1 percent and foreign investment dropped 12.9 percent from the same period in 2017.
Cumulatively, investment implemented in the January-June, 2018, which reached Rp361.6 trillion, rose 7.4 percent from Rp336.7 trillion year-on-year, Azhar said.
"In absolute term, the investment value rose but slowed in growth," he said.
As a result of this slowing trend, BKPM chief Thomas Trikasih Lembong said it would be difficult to reach the investment target, which was set at Rp765 trillion this year.
"The government, however, would not give in. We will come up with a breakthrough to cope with negative effects of instability in exchange rate and global market turbulence," Thomas said.
He said the remaining time of 2018 would be used to meet the target.
The investment projects included the sectors of housing, industrial estates, office buildings, mining, transport, telecommunications, electricity, gas and water supply, metal, machine and electronic industries.
The foreign investors include those from Singapore, Japan, China, South Korea and Hong Kong.
The investment projects implemented in the first half of the year opened new jobs for 491,082 workers , down from 539,457 workers in the same period last year.
Reporting by Ade Irma Junida
Editing by A Saragih, Rahmad Nasution
Reporter: Antara
Editor: Fardah Assegaf
Copyright © ANTARA 2018
