It is partly because (more) investment realization was conducted in the areas outside Java region.
Jakarta (ANTARA) - The Investment Ministry/Investment Coordinating Board (BKPM) noted that the realization of investment in areas outside Java region grew rapidly by 47.9 percent year-on-year (yoy) during the third quarter of 2022.

"Outside Java region, currently, (the amount of investment realization) has reached Rp166.3 trillion, growing 47.9 percent yoy, while in Java, it increases 35.8 percent yoy," Investment Minister/Head of BKPM Bahlil Lahadalia stated at a virtual presentation on Monday in connection with investment performance in the third quarter of 2022.

The minister noted that during the third quarter of 2022, the amount of investment in areas outside Java region had reached Rp166.3 trillion, or 54 percent of the total amount of investment realized in the quarter, which was recorded at Rp307.8 trillion.

Meanwhile, the realization of investment in Java region reached Rp141.5 trillion, or 46 percent of the total investment during the quarter.

The minister said his side continued to encourage equitable distribution of investment in Java region and areas outside it, according to the directives of President Joko Widodo (Jokowi).

Increase in investment outside Java region is one of the president’s attempts to ensure that development in Indonesia will not become Java-centric but rather national-centric.

Lahadalia stated that earlier, the Java region had contributed to 60 percent of Indonesia’s economic growth. However, currently, it is below 60 percent.

"It is partly because (more) investment realization was conducted in the areas outside Java region," he remarked.

He assessed that the success of increasing investment in areas outside Java region was also supported by massive infrastructure development conducted by the government in the 2014-2019 period.

Investment realization in the third quarter of 2022 had led to the absorption of 325,575 workers nationally.

Cumulatively, investment realization in the areas outside Java region during the January-September 2022 period had reached Rp472.1 trillion, or 52.9 percent of the total investment during the period, which was Rp892.4 trillion.

Meanwhile, the realization of investment in Java region during the same period was Rp420.3 trillion, or 47.1 percent of the total investment.

The total amount of investment realization during the January-September 2022 period has reached 74.4 percent of President Jokowi's target in 2022 of Rp1,200 trillion.

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Translator: Ade Junida, Uyu Liman
Editor: Sri Haryati
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