"The most important thing to support this plan is that we should build more infrastructure facilities, such as power plants and asphalted roads outside Java," said Head of BKPM Chatib Basri at the BKPM building in Jakarta on Tuesday.
Basri added the investment growth outside Java had been encouraging as a result of the implementation of the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI).
According to BKPM data, Rp30.6 trillion or 36.8 percent of the realized investment in the fourth quarter of 2012 was made outside Java and Rp52.7 trillion or 63.2 percent in Java. This compared to Rp22.1 trillion or 31.4 percent outside Java and Rp48.1 trillion or 68.6 percent in Java in the same period a year earlier.
"True, it increased 38.5 percent, but the distribution of investment in and outside Java is yet to be ideal," said Basri.
Meanwhile, the total investment outside Java in the January-December 2012 period reached Rp137.6 trillion (43.9 percent), up slightly from the same period a year earlier when the figure was recorded at Rp103.2 trillion (41.1 percent).
"We want the ratio to run into around 40-60 percent or even 50-50 percent per quarter," he added.
Therefore, Basri said the realization of MP3EI programs should be monitored, particularly to find other potential investors to invest their money outside Java.
"Frankly speaking, if the MP3EI projects run smoothly, investors will come there on their own. Many companies have expressed interest to invest outside Java," he said.
"But once again, they have a problem with the lack of infrastructure facilities outside Java," Basri added.
The big five domestic investment destinations in the fourth quarter of 2012 were East Java (Rp9.5 trillion), West Java (Rp2.6 trillion), Jakarta (Rp2.1 trillion), Central Kalimantan (Rp1.3 trillion), and Riau (Rp1.3 trillion).
Meanwhile, the big five foreign investment destinations in the same period were West Java (US$1.2 billion), Jakarta (US$1.1 billion), Banten (US$0.9 billion), East Java (US$0.9 billion), and Papua (US$0.5 billion). (A060/BSR/S012)
Editor: Kunto Wibisono
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