Govt to Facilitate Investment in Export-oriented Industry

KATADATA - Investment Coordinating Board (BKPM) announced yesterday (1/5) that it will focus on investment plans in export-oriented and import substitution-oriented industries. Deputy for Investment Plan Tamba Hutapea said that the main reason behind the decision is because Indonesian industry is practically relying on imported raw material.

“We expect export-oriented and import substitution-oriented industries to be dominant,” he said. Overall, BKPM expected investment this year, including in these two sectors, to reach IDR594.8 trillion or increases by 15.1 percent than last year.

The government encouraged investors to immediately apply for investment permit. According to Tamba, the majority of businesses that have obtained a permit have progressed to the next phase. Plantation companies, for instance, need three to five years before they started to produce because they have to acquire and cultivate the land.

Although investment realization data will not be available until January 22, 2016, BKPM is optimistic that the investment realization last year will meet its target of IDR519.5 trillion. Its optimism is based on the fact that investment realization until the third quarter of 2015 has already reached 77.1 percent of target.