Investment Commitment on Basic Infrastructure Increases by Tenfold
KATADATA ? The Investment Coordinating Board (BKPM) has recorded an increase in investment commitment in electricity, gas, and drinking water sectors up to tenfold during the first semester of 2015. Up until the end of June, BKPM has recorded the investment commitment of three basic infrastructure to reach IDR 309 trillion, and it is much higher compared to the same period last year, which was only IDR 30.7 trillion.
The head of BKPM, Franky Sibrani, said that the increase in the investment commitment proves that many investors are interested in infrastructure projects, especially the ones for basic needs of the people.
?Commitment in these sectors are the greatest, that it can reach tenfold of the previous number,? said Franky in the Finance Ministry, Thursday (23/7).
In total, the investment commitment that was reached during this first semester increases by 39.6% or equivalent to IDR 721.9 trillion from the previous year?s first semester number, which was at IDR 517.1 trillion. The increase in commitment increases greatly in the foreign investment (PMA) sector, which rises by 49.8%, while for the domestic investment, the increase is only 17%.
China is the country that obtained the most investment permit during the first semester with a total of IDR 133.7 trillion. And then, the British Virgin Island also allowed to invest IDR 60.2 trillion, Malaysia invested IDR 44.6 trillion, Singapore invested IDR 39 trillion, and Japan invested IDR 29 trillion.
Besides the basic infrastructure sector, the increase in investment commitment in other sectors are also recorded to experience the same thing. Investment commitment in the household and industrial sectors increase by 30.7%, which equivalent to IDR 107.3 trillion. The ingredients and plantation sector has also increased from last year?s first semester by IDR 8.84 trillion to become IDR 52.8 trillion.
?For the commitment in hotel and restaurants, the amount is IDR 21.5 trillion. This is also significant, since the first semester of 2014 the investment was only IDR 8 trillion,? said Franky.
According to him, even though there is a significant increase, the investment commitment acquired during the first semester is still low. In total, the government is actually targetting the investment commitment to reach IDR 3,518 trillion. This is the reason for Franky to hope so that other ministries and government institutions can support them to reach the target.
The Finance Minister, Bambang Brodjonegoro, admitted that he would continue to give his support to draw investors to plant their investments in Indonesia. One of the things he would do is to give an incentive to reduce and free some taxes in certain period like a tax allowance and tax holiday period.
?I am not worried that the incentive would lessen the country?s absorption, since when companies can be operational, we can get more value-added tax afterwards,? said Bambang.
