"This shows that investment projects in Indonesia are more capital intensive."
Jakarta (ANTARA News) - Realization of domestic and foreign investment in 2012 from January to December rose 24.6 percent to Rp313.2 trillion from Rp251.,3 trillion in 2011.

"Investment has jumped very high. This is encouraging as it is the highest in the investment history in Indonesia," the chief of the Investment Coordinating Board (BKPM), Chatib Basri, said here on Tuesday.

He said the investment record of Rp313.2 trillion was 110.5 percent higher than the target that had been set at Rp285.5 trillion.

Chatib said domestic investment in the year reached Rp92.2 trillion up from Rp76 trillion in the year before while foreign investment was recorded at Rp221 trillion rising from Rp175.3 trillion.

"The realization of domestic and foreign investment in 2012 also surpassed the targets respectively by 120.2 percent and 106.2 percent," he said.

Chatib said the growth was driven by the government`s ability to manage the investment climate well.

"Various efforts have been taken to improve investment climate including improving investment services at central and regional levels through the opening of a one-stop service, giving investment incentives and holding an integrated promotion program that has been responded well by both domestic and foreign investors," he said.

Chatib said mining sector has drawn the biggest foreign investment in 2012 reaching US$4.3 billion (17.3 percent), followed by transportation at US$2.8 billion (11.4 percent), chemical US$2.8 billion (11.4 percent), basic metal industry US$2.5 billion (10 percent) and shipment and transportation US$1.8 billion (7.5 percent).

Based on countries of origin Singapore was the biggest investor with its investment reaching US$4.9 billion, followed by Japan US$2.5 billion, South Korea US$1.9 billion, the US US$1.2 billion and Mauritius US$1.1 billion.

West Java meanwhile was the biggest recipient of foreign investment in the year reaching US$4.2 billion, followed by Jakarta US$4.1 billion, Banten US$2.7 billion, East Java US2.3 billion and East Kalimantan US$2 billion.

The sector that attracted the biggest domestic investment in 2012 meanwhile were food industries drawing Rp11.2 trillion in investment (11.2 percent), following by non-metal mineral industries Rp10.7 trillion (11.6 percent), food crops Rp9.6 trillion (10.4 percent), transportation and telecommunication Rp8.6 trillion (9.3 percent) and others Rp41.6 trillion (45.1 percent).

Based on locations of domestic investment projects East Java was the biggest recipient of the projects worth Rp21.5 trillion, followed by West Java Rp11.4 trillion, Jakarta Rp8.5 trillion, East Kalimantan Rp5.9 trillion and Central Java Rp5.8 trillion.

"The domestic and foreign investments calculated by BKPM are investments outside oil and gas, banking, non-bank financial institutions, insurance, leasing and household industries," Chatib said.

He said total domestic and foreign investment projects employed 307,960 workers consisting of 149,617 in domestic investment projects and 158,343 in foreign projects.

"This shows that investment projects in Indonesia are more capital intensive and therefore the hike of minimum wage did not affect much," he said.
(T.R017/H-YH/O001)

Editor: Priyambodo RH
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