To raise Investment 2016 by 14%, BKPM focuses on Secondary Investment Sector

KATADATA ? The Investment Coordinating Board (BKPM) has targeted an investment realization for next year to reach IDR 594.8 trillion to support the government?s attempt to achieve 5.5% in the economic growth. The amount has increased by 14.5% from the targeted investment of this year, which is IDR 519.5 trillion.

The Head of BKPM, Franky Sibarani, is optimist that BKPM would be able to reach the target. The reason is the investment realization up until the first semester of 2015 has reached 50% from the year?s target. ?In the introduction speech regarding the financial notes last Friday (14/8), President Joko Widodo has mentioned that the private investments can be one of the sectors that we can rely on to support the attempt to achieve the targeted economic growth in 2016,? said Franky in press conference in BKPM, Sunday (16/8).

65%, or equivalent to IDR 386,4 trillion, from the target of investment realization next year is hoped to come from the foreign capital investment (PMA). The remaining, which is IDR 208.4 trillion, comes from the domestic capital investment (PMDN). From the sector side, the investment realization in secondary sector or processing industries is targeted to be at IDR 313.5 trillion or 52.7%, whilst the tertiary sector including the infrastructure is targeted to be at IDR 183.7 trillion or 30.9%. The primary sector or commodity is targeted to be at IDR 97.6% or 16.4%.

BKPM would also want for the investment to be able to support the current government?s policy, which is economic transformation from consuming to producing. ?The investment realization that is focused to the processing and infrastructure industry in order to support the creation of fundamental economy based on production,? said Franky. To reach the target, BKPM would keep five sectors that would be the focus for investment marketing, which are infrastructure, industry, agriculture, maritime, as well as tourism.

While for the focused nations regarding the investment marketing, BKPM would add more to the list: United States, England, Australia, United Arab Emirates, and the countries in the Middle East. This would complete the previous focused nations, which were Japan, China, South Korea, Singapore, and Taiwan. BKPM would also intensify protections toward the investment projects that are still in construction phase to ensure the projects to run smoothly into the commercial production phase, just like the plan. ?So it can affect the economy in a great way,? add Franky.