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NEWS | Press Release : Foreign and Domestic Investment Realization Q3 Results, 2010

Press Release

Foreign and Domestic Investment Realization

Q3 Results, 2010

Jakarta, Sunday, October 31, 2010 – The Investment Coordinating Board of the Republic of Indonesia (BKPM) today announces its third quarter investment realization figures for both domestic (“PMDN”) and foreign direct investment (“PMA”). The figures reported today are based on Investment Activity Reports (LKPM) reported by companies to BKPM.

The total of investment realization for the third quarter (July – September) of 2010 totaled Rp. 56.7 trillion, with domestic investment accounting for Rp. 16.6 trillion and foreign investment accounting for Rp. 40.1 trillion.

The cumulative investment realization of 2010 up to the third quarter (January – September) is Rp. 149.6 trillion. If we compare this to the investment realization for the same period of 2009, which totaled Rp. 112.1 trillion, investment grew by 33.4%. The total investment amount of Q3 2010 compared to the same period of 2009 which accounted Rp 45.7 trillion, also shows a significant 24.1% increase. The growth from Q2 2010 (Rp 50.8 trillion) to Q3 2010, the investment figure grew by 11.6%.

“The investment realization figures in the third quarter of 2010 are very promising. Besides a significant increase in the total investment figures, two positive outcomes must be underlined. The first is the increase in domestic investment (PMDN), and the second being an increase in investments located outside of Java,” says Mr. Gita Wirjawan, the Chairman of Indonesia’s Investment Coordinating Board.

The following are important facts on the investment realization in the third quarter of 2010:

1. There’s a 29.3% increase on domestic direct investment realization (PMDN) on Q3 2010, whereas on the same period of 2009, the growth only reached 22.7%

2. From the notable realized investment by project location on Q3 2010, investment located outside Java showed an increase figure of 37.7% (Rp 21.4 trillion), whereas on the same period of 2009, the figures only reached 12.9% (Rp 5.9 trillion).

3. Notable realized investments by business sector (top 5) for Domestic Investors are: Food Corps and Plantation (Rp 4,5 trillion; 76 projects); Transportation, Storage, and Telecommunications (Rp 3,1 trillion; 13 projects); Food Industry (Rp 2,8 trillion; 34 projects); Chemical and Pharmaceutical Industry (Rp 1,4 trillion; 20 projects); Other Services (Rp 1,1 trillion; 33 projects).

Meanwhile notable realized investment by business sector (top 5) for Foreign Investors are: Real Estate, Industrial Estate and Office Building (US$. 0,8 miliar; 33 projects); Pertambangan (US$. 0,7 miliar; 88 projects); Transportation, Storage, and Telecommunications (US$. 0,6 miliar; 29 projects); Food Industry (US$. 0,4 miliar; 67 projects) and Food Corps and Plantation (US$. 0,3 miliar; 72 projects).

4. Notable realized investments by project location (top 5) for Domestic Investors are: Central Kalimantan (Rp 2,8 trillion; 23 projects), DKI Jakarta (Rp 2,5 trillion; 27 projects); West Java (Rp 1,9 trillion; 41 projects); East Kalimantan (Rp. 1,8 trillion; 20 projects) and East Java (Rp. 1,8 trillion; 30 projects).

Meanwhile notable realized investment by project location (top 5) for Foreign Investors are: Banten (US$ 1,3 miliar; 79 projects); DKI Jakarta (US$ 0,8 miliar; 275 projects); West Java (US$. 0,7 miliar; 180 projects); Jawa Timur (US$. 0,4 miliar; 39 projects); dan Kalimantan Timur (US$. 0,3 miliar; 48 projects).

5. Notable realized investments by country of origin (top 5) are UK (US$ 1,3 miliar; 86 projects); Singapore (US$ 0,7 miliar; 158 projects); Malaysia (US$ 0,4 miliar; 68 projects); Japan (US$ 0,2 miliar; 87 projects); Netherlands (US$ 0,2 miliar; 37 projects).

6. Labor force absorption arising from total realized investments reached 246,622 persons, 115,212 persons of which resulted from domestic investments, and 131,410 of which resulted from foreign investments.

”The achievements we have made so far has indeed been supported by improvements on investment services and better coordination between the central and regional governments. If we continue to work hard to further enhance these synergies, I firmly believe these will continually be reflected in the investment figures, ” says Mr. Gita Wirjawan, the Chairman of Indonesia’s Investment Coordinating Board.