JAKARTA. The Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) announced the realization of Indonesia's investment in the first quarter of 2020, growing by 8% from the same period last year (year on year), to IDR 210.7 trillion. In detail, the investment consists of Domestic Direct Investment (Penanaman Modal Dalam Negeri/PMDN) of IDR 112.7 trillion and Foreign Direct Investment (Penanaman Modal Asing/PMA) amounting to IDR 98 trillion.
BKPM considers, this realization will be a positive sentiment for the Indonesian economy, amid the issue of Corona Virus Disease 2019 (Covid-19) as it is today. In fact, BKPM believes that this achievement can maintain the momentum of economic growth in 2020, which is threatened to be corrected due to the impact of Covid-19.
As compared to the 2020 target, investment realization in the first quarter had reached 23.8% of the target set at IDR 886.1 trillion, with the amount of labor absorbed reaching 303,085 workers.
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Meanwhile, when viewed based on investment location, dominance still occurs in East Java Province with an investment value of IDR 31.4 trillion or 14.9% of total investment. Whereas the four other largest provinces, namely West Java contributed 14.2%, DKI Jakarta 9.6%, Central Java 9.1% and Riau 6%.
In general, investment outside Java experienced a growth of 19.3% to IDR 102.4 trillion.
The investment realization based on country of origin is still dominated by Singapore with a value of USD USD 2.7 billion or 40%, then China followed by USD 1.3 billion or 18.9%, Hong Kong at USD 0.6 billion or 9.3%, Japan at USD 0.6 billion or 8, 9% and Malaysia USD0,5 billion or 7.1%. While investment by sector is dominated by transportation, warehouse and telecommunication with a value of IDR 49.3 trillion or 23.4%.
