Jakarta, May 2, 2010 – The Coordinating Board for Investment (BKPM) of the Republic of Indonesia today announces its first quarter investment realization figures for both domestic and foreign direct investment. The figures reported today were based on Investment Activity Reports (LKPM) reported by companies to the Investment Board.

With a growing national need for higher investment, the release of these investment realization figures are accompanied by a change in methodology in how investment data is collected, including the frequency with which they are gathered. The reporting period for investment companies whose projects are still under development will now need to submit Investment Activity Reports every quarter, instead of every six months as previously required. Investment companies who have obtained a Permanent Business License (IUT) must now submit an Investment Activity Report every six months, instead of once a year as previously required.

The release of the new methodology for investment realization for both domestic and foreign capital was undertaken by BKPM to better reflect investment realization flows per period, recording investment as and when they occur, as opposed to cumulatively. While the previous methodology recorded investment plans once a company had obtained a Permanent Business License or Operating License, which do little to capture the periodic flow of investments in real time.

Through regular and more frequent reporting of companies to BKPM with respect to their new capital injections and/or plans for expansion through the Investment Activity Report, the new figures will mirror actual realization with better accuracy, and would help enhance monitoring fluctuations in the investment landscape, which in turn would help shape better policies towards to improving the investment climate.

One note to mention is that the FDI (PMA) figures which are reported by BKPM differs from those reported by Bank Indonesia (BI), which uses the Balance of Payments method (“BOP”). In its reporting, BI uses the Balance of Payments method which records the net inflow and outflow of foreign capital fund flows that enters into Indonesia from abroad, while BKPM records the value of the foreign investment that flows into Indonesia as well as those funds originating from foreign companies (PMAs) already operating in Indonesia. For example, PMA companies that inject new capital for expansion projects coming from funds from its own operations would be captured in BKPM figures.

The results for the first quarter of 2010 for investment realization are as follows:

1. BKPM reports investment realization figures submitted by both domestic and foreign companies through the Investment Activity Reports (LKPM). The Investment Activity Reports include investment activity and realization outside of the following sectors: Oil and Gas, Banking, Financial Institutions, non-bank Financial Institutions, Insurance, Leasing, Portfolio Investments, Capital Markets Investments, Investments whose licensing are issued by technical Ministries, as well as Household Investments for the first quarter of 2010.
    
2. Domestic and foreign investment realization in Q1 of 2010 totaled Rp. 42.1 trillion for 574 projects, with total domestic investment at Rp. 6.7 trillion for 150 projects, and total foreign investment at Rp. 35.4 trillion or US$ 3.8 billion for 424 projects.
    
3. Notable realized investments by business sector for Domestic Investors are Transportation, Warehousing and Communications which totaled Rp. 1.9 trillion (7 projects); Trade and Reparations totaling Rp. 1.3 trillion (8 projects); Electricity, Gas and Water for Rp. 1.2 trillion (12 projects) and Other Services for Rp. 0.8 trillion (2 projects); as well as metal machinery and electronics Industry for Rp. 0.4 trillion (49 projects).
    
4. Notable realized investments by business sector for Foreign Investors are Transportaion, Warehousing and Communications which totaled US$ 941.5 million (23 projects); Mining which total US$ 711.2 million (39 projects); Electricity, Gas and Water totaling US$ 681.6 million (9 projects); Housing, Industrial Zone and Office Buildings which totaled US$ 406.1 million (20 projects); and Motorcycle Industry and other transportation devices totaling US$ 244.6 million (10 projects);
    
5. Notable realized investments by project location for Domestic Investors are in the DKI Jakarta Province, valued at Rp 1.7 trillion (19 projects); Banten Province value at Rp. 1.3 trillion (5 projects); West Jawa Province valued at Rp. 0.9 trillion (14 projects); South Sumatra Province valued at Rp. 0.8 trillion (6 projects); and South Kalimantan Province with investments valued at Rp. 0.5 trillion (7 projects).
    
6. Notable realized investments by project location for Foreign Investors are in the DKI Jakarta Province with investments totaling US$ 1.4 billion (154 projects); West Java Province valued at US$. 551.5 billion (59 projects); East Kalimantan Province valued at US$ 518.0 million (21 projects); East Java Province valued at US$ 458.4 juta (14 projects); and Papua Province valued at US$ 167.0 million (5 projects).
    
7. Notable realized investments by country of origin are Singapore totaling US$ 676.8 million (62 projects); Mauritius valued at US$ 446.6 million (2 projects); United States of America valued at US$ 436.9 million (12 projects); United Kingdom valued at US$ 214.9 million (19 projects); and Australia valued at US$ 186.4 million (14 projects).
8. Labor force absorption arising from total realized investment reached 123,685 people, 45,953 of which resulted from domestic investments, and 77,732 of which resulted from foreign investments.