INVESTMENT COORDINATING BOARD


Press Release

Domestic and Foreign Direct Investment Realization

Q4 Results, 2010

Jakarta, January 23, 2011 – The Investment Coordinating Board of The Republic of Indonesia (BKPM) today announces its 2010 fourth quarter investment realization figures for both domestic investment (PMDN) and foreign direct investment (PMA). The investment figures presented illustrates the realization of domestic investment (PMDN) and foreign direct investment (PMA) that are not yet in operation and are still under construction, as well as any additional investments (capital expenditure) from companies that are already operating in Indonesia.

Investment Realization figures for 2010

The total investment realization figure in the fourth quarter (October-December) of 2010 is Rp. 58.9 trillion. Out of this number, Rp. 22 trillion is the realization of domestic investment (PMDN), and Rp. 36.9 trillion from foreign direct investment (PMA).

Cumulatively for 2010, the total investment realization figure from both PMA and PMDN is Rp. 208.5 trillion, a 54.2% increase compared to the 2009 figure of Rp 135.2 trillion. Compared to the 2010 original target of Rp 160.1 trillion, this realization figure has exceeded the target by 30.2%.

"The investment activity in 2010 is very encouraging. Domestic investment (PMDN) and the distribution of investment realization in provinces outside Java increased significantly compared to 2009. This illustrates that the government’s efforts to improving the investment climate through better investment services and policy reforms have yielded results. The achievement also highlights improvements of investment climate at the provincial and local level, and domestic companies’ ability to tap into them. We are hopeful that continuous investment climate reforms would increase the contribution of investments to the national economy,” said Mr. Gita Wirjawan, the Chairman of Indonesia’s Investment Coordinating Board.


The following are important facts on the domestic investment (PMDN) and foreign direct investment (PMA) realization in 2010 :

A.   Fourth Quarter (October-December 2010 Period)

      1.   There was  an  increase of 130% for domestic direct investment  realization  (PMDN)  from
            Rp. 9,69 trillion in 2009 to Rp. 22,3 trillion in 2010.

            Domestic investment realization based on the  business sectors  (top 5) are : Transportation,
            Storage  and Telecommunications ( Rp 6.9 trillion; 6 projects);  Food Industry ( Rp  5.7 trillion;
            56 projects);  Electricity,  Gas and  Water Supply (Rp 4.0 trillion; 9 projects);  Food Crops  and
            Plantation (Rp 1.7 trillion; 44 projects); Basic Chemical Industry, Chemical and Pharmaceutical
            Products (Rp 0.8 trillion; 28 projects).

            While the realization of foreign direct investment (PMA)  based on the business  sectors  (top 5)
            are: Transportation, Storage and Telecommunications (US$ 1.9 billion; 54 projects); Electricity,
            Gas  and  Water  Supply  (US$  0.3 billion,  16 projects );  Food  Industry  (US$  0.2  billion,  77
            projects) and Food Crops and Plantation (US$ 0.2 billion; 59 projects); Mining (US$ 0.2 billion;
            70 projects).

     2.   The  Investment realization  outside  Java in 2010 increased by 36.4%,  from Rp 9,76 trillion in
            2009 to Rp 13,3 trillion in 2010.

            Domestic direct investment (PMDN) realization based on the project location (top 5) are: West
            Java  (Rp  11.3 trillion;  46  projects),  Banten  (Rp 3.8  trillion;  39  projects);  South  Sulawesi
            (Rp 2.1 trillion; 6 projects), East Kalimantan (Rp 1.9 trillion; 20 projects)  and  West Sulawesi
            (Rp 0.7 trillion; 2 projects).

            While  the  realization of foreign  direct  investment (PMA) based on the project location (top 5)
            are: DKI Jakarta  (US$ 2.2 billion,  274 projects);  West  Java  (US$  0.4  billion,  295 projects);
            East Java  (US$ 0.3 billion;  53 projects);  Banten  (US$ 0.2 billion, 129 projects);  and Central
            Kalimantan (US$ 0.2 billion; 19 projects).

     3.   Foreign investment (PMA)  realization  based on  the country of  origin  (top 5)  are: Singapore
           (US$  2.3  billion,  157 projects);  United  Kingdom  (US$  0.2 billion);  84  projects );  Japan
           (US$ 0.1  billion,  151 projects);  Netherlands (US$  0.1  billion; 44  projects);  South  Korea
           (US$ 0.1 billion, 143 projects).

B.  Cumulative (January-December) 2010

      1.  The realization of domestic investment  (PMDN) in  2010 increased by  60% compared to 2009.
           The contribution of domestic direct investment (PMDN) to the total realized investments in 2010
            increased by 29.0% (Rp 60.5 trillion), while during the same period in 2009 the share was only
            28.0% (Rp 37.8 trillion).

      2.   The distribution  of the project  location in  2010  showed an  increase of  investment activity
            outside Java by 32.9%, with total investment accounted to Rp 68.5 trillion. While at the same
            period  in  2009,   the  investment  activity  outside  Java  was only 18.5 %  (Rp  25.0  trillion).
            In comparison to 2009, the investment realization outside Java in 2010 increase significantly
            by 174.0%.

     3.    Domestic  direct  investment  (PMDN)  realization based  on the business sectors (top 5) are:
             Food   Industry   (Rp  16.4  trillion;  208  projects);   Transportations,  Storage  and
             Telecommunications  (Rp  13.8  trillion; 46  projects);  Food  Crops  and  Plantation  (Rp 28.7
             trillion;  238  projects);  Electricity,  Gas and  Water  Supply  (Rp  4.9  trillion;  47  projects);
             and Other Services (Rp 3.3 trillion; 92 projects).

             While the realization of foreign direct investment (PMA)  based  on  the business  sector (top 5)
             are: Transportations, Storage and Telecommunications (US$. 5.0 billion, 154 projects); Mining
             (US$.  2.2  billion,  298  projects);   Electricity,  Gas  and  Water  Supply  (US$.  1.4  billion;  59
             projects);  Real  Estate,  Industrial  Estate  and  Office  Building  (US$. 1.1 billion; 89 projects)
             and Food Industry (US$. 1.0 billion, 250 projects).

     4.    Domestic direct investment (PMDN) realization based on the project location (top 5) are: West
            Java   (  Rp  15.8  trillion;  136  projects ),  East  Java  ( Rp  8.1  trillion;    117  projects);   East
            Kalimantan (Rp 7.9 trillion ;  64 projects);  Banten  (Rp  5.8  trillion; 97 projects)  and Jakarta
            (Rp 4.5 trillion; 104 projects).
           

            While the realization of foreign direct investment (PMA) based on the project location (top 5)
            are: Jakarta (US$ 6.4 billion; 1068 projects), East Java (US$ 1.8 billion, 137 projects); West
            Java (US$ 1.6 billion, 729 projects); Banten (US$ 1.5 billion, 336 projects); and East
            Kalimantan (US$ 1.1 billion, 138 projects).

     5.   Foreign direct investment (PMA) realization based on country of origin (top 5) are: Singapore
           (US$ 5.0 billion, 537 projects), United Kingdom (US$ 1.9 billion; 285 projects); USA (US$ 0.9
           billion; 121 projects); Japan (US$ 0.7 billion; 394 projects) and Netherlands (US$ 0.6 billion;
           138 project).

     6.   Realization of  Labor  force  absorption  in  2010  reached  463.012  people consist of 133.053
           people of  which  resulted  from  domestic  direct  investments  (PMDN)  and  329.959 of which
           resulted  from  foreign  direct  investments  (PMA).  Comparing  the  realization  of  Labor  force
           absorption in 2010 to 2009 (303.537 people), there is an increasing by 52.5%.

“Several provinces outside Java experienced significant growth in investment activities, in 2010, including East Kalimantan (2010: Rp 17.8 trillion; 2009: Rp 0.8 trillion), Central Kalimantan (2010: Rp 8.8 trillion; 2009: Rp 1.5 trillion), South Sulawesi (2010: Rp 7.2 trillion; 2009:Rp 0.7 trillion), West Nusa Tenggara (2010: Rp 3.8 trillion; 2009: Rp 0.2 trillion) and South Sumatera (2010: Rp 3.4 trillion; 2009: Rp 1.1 trillion).

This achievement was supported by improved investment services in the regions. These regions have implemented National Single Window for Investments (PTSP) both at the provincial level and district/city level. We have also improved our coordination between the central and regional governments. If we continue to work hard to further enhance these synergies, it will continue to be reflected in Indonesia investment figures”, said Mr. Gita Wirjawan, the Chairman of Indonesia’s Investment Coordinating Board.

Investment Realization target for 2011

Domestic (PMDN) and foreign direct investment (PMA) realization target for 2011 is Rp. 240 trillion (an increase of 15% from the investment realization figure in 2010). Continuous improvements of investment policies, investment services, infrastructure development acceleration and the provision of fiscal incentives on capital investment will all contribute to the realization of this target.



For further information, please contact:
M.M Azhar Lubis
Deputy Chairman of Investment Monitoring and Implementation
Indonesia Investment Coordinating Board (BKPM)
Jl. Jend. Gatot Subroto 44, Jakarta 12190, Indonesia
Phone:  021-5252008 ext.7001
Mobile: 08159525035
e-mail : azhar@bkpm.go.id