Indonesian government maintains investment target at Rp519.5 trillion

Indonesian government maintains investment target at Rp519.5 trillion

Franky Sibarani. (ANTARA)

Jakarta (ANTARA News) - The Indonesia Investment Coordinating Board (BKPM) has decided to maintain its investment target for 2015 at Rp519.5 trillion, an increase of around 14 percent as compared to the value recorded in the previous year.

The domestic investment target is set at Rp175.8 trillion, while the foreign investment target is at Rp343.7 trillion, BKPM Chief Franky Sibarani remarked here on Wednesday.

"The target remains at Rp519.5 trillion or up by around 14 percent," he stated.

He said all sectors would be pushed to meet the target with investment to primary industries expected to reach Rp97.7 trillion, secondary or downstream industries at Rp211.9 trillion, and the service sector at around Rp147.1 trillion.

"In line with the BKPM strategy, we will focus on several sectors such as electricity, import substitutions, infrastructure, maritime, agriculture, and labor-intensive industries," he revealed.

The realization of investment from January to December 2014 reached Rp463.1 trillion, surpassing the target set at Rp456.6 trillion or was up by 16.2 percent from Rp398.6 trillion recorded in the previous year.

The realization of investment in the fourth quarter of 2014 reached Rp120.4 trillion comprising domestic investment at Rp41.7 trillion and foreign investment at Rp78.7 trillion.

He noted that investment is forecast to remain secure in view of the strong optimism exhibited by investors to invest in Indonesia that has been referred as their response to the current political situation in the country.

"They did not view it as a serious matter. They were more serious in reacting to the presidential election last year," he stated as is evident by the realization of investment in the fourth quarter of 2014 at the end of the process of transfer of government.

"It was very clear soon after the presidential election was over that the investment growth was still recorded in the fourth quarter, although it was little. In view of that, we hope that in the first quarter of 2015, there will be a significant increase," he noted.

In an effort to meet the investment target, he affirmed that the government had simplified investment licensing processes by placing them under a one-stop service system.

Other efforts still being undertaken include facilitating and finding solutions to solve bottleneck problems in 95 projects in 25 provinces, with investment reaching more than Rp400 trillion.

"If the problems are solved, it would certainly boost investment in 2015," he added.