BKPM: Foreigners Dominate Investment Realization In The Fourth Quarter Of 2020

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said investment realization continued to increase compared to the previous quarter. In the fourth quarter of 2020, realized investment amounted to Rp214.7 trillion.

"The investment realization rose 2.7 percent on a quarter to quarter (QtoQ) basis and up 3.1 percent year on year (YoY) or on an annual basis," he said, in a virtual press conference, Monday, January 25.

Bahlil said the main key to increasing investment realization was the COVID-19 vaccination program launched by the Indonesian government since the end of last quarter. So that it creates confidence for foreign investors. This has made investment soar, especially foreign investment (PMA).

"We know that in the fourth quarter where the COVID-19 pandemic case has already been vaccinated. That has increased the confidence of friends of foreign investors in Indonesia," he said.

In addition to vaccinations, said Bahlil, the Omnibus Law of the Job Creation Act Number 11 of 2020 also provides confidence for foreign investors in Indonesia to invest.

"This is enough to have a positive influence on the sustainability of foreign investors in Indonesia," he explained.

Bahlil said, what is interesting in the fourth quarter is that PMA is higher than that of PMDN. The investment realization that comes from PMA is bigger in number than Domestic Investment (PMDN). The amount of FDI in the fourth quarter of 2020 was IDR111.1 trillion or 51.7 percent. This figure is up 4.6 percent on a QtoQ basis and 5.5 percent annually.

Meanwhile, said Bahlil, PMDN amounted to IDR 103.6 trillion or equivalent to 48.3 percent. This figure was up 0.8 percent on a QtoQ basis and 0.7 percent on an annual basis.

"This is certainly an increase, both from the third quarter and in the same quarter last year," he said.

Not only that, according to Bahlil, the absorption of the number of workers in the fourth quarter of 2020 also increased. The figure reached 294,780 people.

"If we compare this with last year, the increase is not more than 3 percent. Then in the previous quarter the increase was also not more than 3 percent," he explained.