BKPM Head Bahlil Lahadalia stated here on Friday that the growth in investment realization indicated that the country has passed through its critical period in Q3 of 2020.
"The critical period of investment realization during the COVID-19 pandemic has elapsed. We have reached the critical period in the second quarter of 2020 wherein our realization of investment was only recorded at Rp190 trillion. In the third quarter of the year, our investment reached Rp209 trillion," he remarked.
Investment realization increased by 8.9 percent, from Rp191.9 trillion in the last quarter. Of the total figure, domestic investment constituted Rp102.9 trillion, or 49.2 percent, and foreign investment at Rp106.1 trillion, or 50.8 percent.
"This is interesting, since foreign investment growth occurred although not maximally. Thus, the third quarter shows a momentum to increase after we witnessed a decline in the second quarter," he emphasized.
Five main sectors of investment during the period are transportation, warehouses and telecommunications; basic metal, metal and non-machinery industry; electricity, gas and water; construction; housing; industrial; and office.
The investments were located in West Java, Jakarta, Banten, East Java, and Riau. Five main investing countries during the period from July to September 2020 are Singapore, China, Japan, Hong Kong, and the Netherlands.
Cumulatively, investment realization during the January-September period had reached Rp611.6 trillion, or 74.8 percent, as compared to the targeted Rp817.2 trillion in 2020. It comprised domestic investment at Rp309.9 trillion, or 50.7 percent, and foreign investment of Rp301.7 trillion, or 49.3 percent.
The investment has absorbed 295,387 workers during the third quarter of 2020 and 861,581 workers cumulatively during the period from January to September. Related news: Investment in housing has big economic impact: minister
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