Amid Pandemic Pressure, BKPM Calls Realization of Investment Grows by 8%

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.

Read: Questioning VAT on Free Gift Amid Corona Pandemic

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%.