Investment to further develop Labuan Bajo reaches rp1.3 trillion

Investment to further develop Labuan Bajo reaches rp1.3 trillion

One of tourist objects in Labuan Bajo, Central Sulawesi Province. (Skyscanner) .

Kupang, E Nusa Tenggara (ANTARA News) - The office of Bank of Indonesia or Central Bank  in East Nusa Tenggara recorded that the gross fixed capital formation for development of the Labuan Bajo tourism area, West Manggarai Sub-district, reached more than Rp1.3 trillion.

"The investment comes in a form of development in various forms of infrastructure in the spirit to welcome participants of the IMF and World Bank General Meeting in Bali this month," Head of the Bank of Indonesia East Nusa Tenggara office Naek Tigor Sinaga stated in Kupang, Thursday.

     One of the infrastructure projects currently being completed is development of the 20-megawatt capacity Labuan Bajo power station, valued at Rp375 billion.

Moreover, investment worth Rp500 billion has been channeled to elevate the status of Komodo Airport to become an international facility and construction of a rest area and souvenir shops, with Rp3.4 billion of investment.

Investments made in infrastructure development in Labuan Bajo aim to make a significant contribution to investment growth in East Nusa Tenggara, especially in the second quarter, which was recorded to have experienced a 4.61 percent growth year-on-year (yoy).

The figure showed an increase, as compared to 2.23 percent yoy in the first quarter of 2018.

He further explained that the increase occurred due to infrastructure investments that had also increased by 3.32 percent yoy as compared to 0.43 percent yoy in the previous quarter.

On the other hand, he pointed to a slowdown in growth of non-infrastructure investments, from 14.42 percent yoy in the previous quarter, to 13.75 percent yoy.

He believed that such a condition is caused by a decline in investment in supporting services for business activities in the province, such as machinery, loading equipment, and electricity.

Reporting by Aloysius Lewokeda
Editing by Aria Cyndyara