Great Rek! East Java Is The Most Favorite Region Of Local Entrepreneurs Investing Business Capital

Illustration (Photo: Doc. Antara)

JAKARTA - East Java is said to be at the top in terms of realization of domestic investment (PMDN) with a value of Rp. 13.9 trillion for the second quarter of 2021.

This achievement beat a number of other leading regions, such as West Java with a realization of Rp. 12.1 trillion, DKI Jakarta of Rp. 11.2 trillion, Banten of Rp. 10.2 trillion, and Central Java of Rp. 7.8 trillion.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance Febrio Kacaribu claimed that this condition was driven by investor confidence that the government could still control the spread of COVID-19 and its new variant.

"Positive sentiment also comes from structural reform efforts through the Job Creation Law, which is expected to provide convenience and certainty for investors," he said in a press release quoted on Thursday, July 29.

According to Febrio, the total value of PMDN for the second trimester of this year amounted to Rp. 106.2 trillion, or grew 12.7 percent year-on-year (year-on-year/yoy).

In detail, the largest PMDN is the housing sector, industrial estates, and offices with a value of IDR 20.5 trillion.

Then, transportation, warehouse and telecommunications amounted to IDR 14.5 trillion, electricity, gas and water amounted to IDR 11.7 trillion, construction amounted to IDR 9.9 trillion, and the food industry amounted to IDR 7.1 trillion.

"Sizable investment occurred in labor-intensive sectors such as the housing sector and industrial sectors such as manufacturing, basic metals, and food," said Febrio.

Meanwhile, the value of foreign investment (PMA) during the second quarter of 2021 was reported at 7.99 billion US dollars or equivalent to Rp. 116.8 trillion.

"Investment will continue to move outside Java, along with the increasing potential of the downstream industry. This downstream industry will be encouraged to approach sources of mining goods, such as oil and gas,” closed Febrio.