Minister Bahlil Calls More Investments Outside Java: Five Industrial Sectors Are Investors' Favorites

Investment Minister Bahlil Lahadalia (Photo: Instagram @bahlillahadalia)

JAKARTA - Investment Minister/Head of Capital Investment Coordinating Board (BKPM) Bahlil Lahadalia said the spread of investment outside Java was much higher than in Java. Investment in the third quarter of 2021 outside Java was recorded at IDR 112.5 trillion or 51.9 percent.

Meanwhile, Bahlil continued, investment in the third quarter of 2021 in Java was recorded at IDR 104.2 trillion or 48.1 percent of the total investment that entered IDR 216.7 trillion.

"This draws a comparison between Java and Outside Java. Outside Java is already bigger," he said in a virtual press conference, Wednesday, October 27.

Bahlil said the realization of the investment spread between Java and outside Java from January to September was IDR 659.4 trillion. Of the total, 51.7 percent or IDR 340.7 trillion was outside Java, while 48.3 percent or IDR 318.7 trillion was in Java.

Meanwhile, five industrial sectors are investors' favorite choices, namely housing, industrial areas, and offices, which recorded investment flows of up to IDR 28.1 trillion.

Then, the transportation, warehouse, and telecommunications sectors amounted to IDR 26.6 trillion, the metal industry sector to IDR 25.1 trillion, the mining sector to IDR 21 trillion, and other service sectors to IDR 19.4 trillion.

According to Bahlil, West Java is the ideal province for investors to invest. This is evidenced by the investment absorbed by West Java of IDR 34.8 trillion. Then, Jakarta ranks second with an investment value of IDR 23.9 trillion.

Furthermore, East Java and Riau received injections of investment funds of IDR 18 trillion and IDR 16.5 trillion, respectively. Meanwhile, Banten is in fifth place, absorbing an investment of IDR 14.2 trillion.

Bahlil said that Singapore is a country that dominates investment in the country. The country of the lion brought in investments with a value of up to USD 2.6 billion. Followed by Hong Kong with USD 0.9 billion.

In the third position, said Bahlil, there was Japan with an investment of USD 0.7 billion. Then, China amounted to USD 0.6 billion, and the United States of USD 0.5 billion.

Bahlil said overall, the realization of investment in the third quarter of this year reached IDR 659.4 trillion. This gain is equivalent to 73.3 percent of the target set by the Joko Widodo (Jokowi) administration, which is IDR 900 trillion.

Furthermore, Bahlil said he was optimistic that in the remaining two months, the realization of the investment could reach the predetermined target. However, he admitted that attracting investment into the country is not an easy job for the Ministry of Investment.

"This is a job that requires hard work. But I am sure that God willing, our target will be achieved. My answer does not mean that without basis we have carried out a mapping calculation of some of our investments that have been realized and candidates who will enter in the fourth quarter with the available opportunities. So, God willing, we pray that it can reach IDR 900 trillion," he said.