PRESS RELEASE

 Domestic and Foreign Direct Investment Realization

Q1 Results, 2011

Jakarta, 20 April 2011 – The Indonesia Investment Coordinating Board (BKPM) of the Republic of Indonesia today announces the Domestic and Foreign Direct Investment realization during the First Quarter of 2011. It is the Domestic and Foreign Direct Investment realization which is counted based on Investment Activity Report (LKPM) submitted by the companies on the First Quarter of 2011.

The total investment realization figure in the first quarter (January – March) of 2011 is Rp 53.6 trillion. Out of this number, Rp 14.1 trillion is the realization of domestic investment, and Rp 39.5 trillion from foreign direct investment.

Compared to the target of investment realization of 2011 (Rp 240.0 trillion), the realization during the First Quarter – 2011 has reached 22.3% of the target whereas if compared to the realization of the same period on 2010, it increases 27.3%.

“The investment realization on the first quarter/2011 shows a significant improvement, compared to that of the same period on 2010. This improvement is seen from the increased distribution and amount of investment flows to the outside of Java and the number of domestic direct investment” as stated by the Chairman of Indonesia Investment Coordinating Board, Gita Wirjawan.

Highlights of the investment realization of domestic direct investment and foreign direct investment on the First Quarter – 2011:

1.              Domestic Direct Investment Realization

            Compared to the same period on 2010, the First Quarter of 2011, Domestic Investment Realization increases about 110.4% from Rp 6.7 trillion to Rp 14.1 trillion.

            Based on Sectors (five biggest sectors), the domestic direct investment realization are: Transport, Storage and Communication (Rp 2.7 trillion; 6 projects); Non Metallic Mineral Industry (Rp 2.4 trillion; 12 projects); Electricity, Gas and Water Supply (Rp 1.6 trillion; 12 projects); and Food Crops and Plantation (Rp 1.4 trillion; 54 projects).

            The Domestic Direct Investment realization based on location (five biggest locations) are East Java (Rp 2.5 trillion; 31 projects), West Java (Rp 2.3 trillion; 41 projects); Jakarta Capital Territory (Rp 2.2 trillion; 7 projects); Central Sulawesi (Rp 1.2 trillion; 5 projects) and South Sulawesi (Rp 1.1 trillion; 10 projects)

2.             Foreign Direct Investment Realization

            Compared to the same period on 2010, the First Quarter of 2011, Foreign Direct Investment Realization increases 11.8%, from Rp 35.4 trillion to Rp 39.5 trillion.

            Based on Sectors (five biggest sectors), the Foreign Direct Investment (FDI) realization are Mining (US$ 1.0 billion; 79 projects); Electricity, Gas and Water Supply (US$ 0.6 billion; 15 projects); Transport, Storage and Communication (US$ 0.5 billion; 35 projects); Food Crops and Plantation (US$ 0.4 billion; 74 projects); and Food Industry (US$ 0.3 billion; 61 projects).

            The FDI realization based on location (five biggest locations) are West Java (US$ 1.1 billion; 180 projects); Jakarta Capital Territory (US$ 0.9 billion; 183 projects); South Sumatera (US$ 0.4 billion; 22 projects); Papua (US$ 0.4 billion; 9 projects); and West Kalimantan (US$ 0.3 billion; 18 projects).

            Based on country (five biggest countries), the FDI realization are Singapore (US$ 1.1 billion; 142 projects); United States of America (US$ 0.4 billion; 24 projects); Japan (US$ 0.3 billion; 78 projects); British Virgin Island (US$ 0.2 billion; 30 projects); United Kingdom (US$ 0.2 billion; 36 projects).

3.             Location Distribution

            Location distribution on the first quarter of 2011 outside Java is Rp 23.7 trillion. Compared to the same period on 2010, it increases 24.2 % from Rp 19.1 trillion.

4.            The Indonesian Labor absorption during the first quarter of 2011 reaches 196,906 people consisted of 73,046 people from domestic direct investment and 123,860 people from foreign direct investment. Compared to the absorption of the same period on 2010, it increases 59.2% from 123,685 people.

“Increasing realization of investment shows investor confidence for government policies, national economic development, investment climate improvement and the continuous improvement of services to investors at central, provincial and district/city�??�?? government. This is also consistent with capital inflow data in recent years recorded by Bank Indonesia. With the joint effort by related agencies, it is expected that the significant increase in investment would strengthen the national economy", as explained by the Chairman of Investment Coordinating Board, Gita Wirjawan

More information can be found in the attached matrix.

For more information contact:
M. M. Azhar Lubis
Deputy Chairman of Investment Controlling & Implementation
Jl. Jend. Gatot Subroto 44, Jakarta 12190, Indonesia
Phone: 021-5252008 ext.7001
HP: 08159525035
e-mail: azhar@bkpm.go.id