Foreign Investment Is Still Growing 50.8 Percent, Or Becoming IDR 106.1 Trillion In July-September

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - The Investment Coordinating Board (BKPM) recorded that investment realization in Indonesia from July to September or the third quarter of this year amounted to Rp.209 trillion. This figure is up 8.9 percent from the previous quarter, even though currently the COVID-19 pandemic is still happening.

BKPM Head Bahlil Lahadalia said the investment realization figure had reached 74.8 percent of the target of IDR 817.2 trillion. Compared to the same period last year, there was an increase of 1.6 percent.

"I convey that the critical period of our investment realization in 2020 has been passed. Our critical point is in the second quarter where our investment realization was only Rp190 trillion. We saw in the third quarter our investment realization amounted to Rp209 trillion," he said in a press conference. virtual, Friday, October 23.

From the realization of investment in the third quarter of Rp209, Bahlil claimed, there was employment of 295,387 people from 45,726 investment projects in Indonesia.

"We really push how to realize investment using labor. Once they have the equipment, we will tell investors that they need enough work because of the pandemic," he said.

Meanwhile, foreign investment (PMA) was recorded at IDR 106.1 trillion or 50.8 percent with a growth compared to the second quarter of 8.7 percent. And an increase of 1.1 percent when compared to the third quarter of 2019.

For Domestic Investment (PMDN), the realization was IDR102.9 trillion or 49.2 percent with a growth compared to the second quarter of 9.1 percent. And an increase of 2.1 percent compared to the third quarter of 2019.

"It is also interesting that the growth in the realization of FDI has started to increase well, even though it is not too maximal and this is almost equal to the PMDN. This means that in the third quarter where the momentum is going to rise. The second quarter is down and now it is going up well. PMA and PMDN, "he explained.

Largest Investment Sector

BKPM noted there are five sectors with the largest investment. First, transportation, warehouse and telecommunication with an investment of IDR 32.1 trillion. The growth of this sector reached 15.3 percent.

Second, the basic metal industry, metal goods, not machinery and equipment with an investment of IDR 24.6 trillion and a growth of 11.8 percent.

Third, electricity, gas and water with an investment of IDR 24.4 trillion and a growth of 11.7 percent. Fourth, construction with an investment of IDR 23.2 trillion, and a growth of 11.1 percent.

Finally, housing, industrial estates and offices with an investment of IDR 21.3 trillion. The growth of this sector is 10.2 percent.

"We encourage housing, an industrial area to have a truly integrated place between large, medium and MSME entrepreneurs such as in Batang," he said.