Press Release

Domestic and Foreign Direct Investment Realization Quarter III

Year 2011

Jakarta, October 20, 2011 – The Investment Coordinating Board of Republic of Indonesia (BKPM) today announces the third quarter (July – September) 2011 and period of January to September 2011 of its investment realization figures for both domestic (PMDN) and foreign direct investment (PMA).

The investment realization on Quarter III (July-September) 2011 is Rp 65.4 trillion; increase 15.3% compared to that in the same period in 2010.

The domestic (PMDN) and foreign (PMA) direct investment realization in the period of January to September 2011 reach about Rp 181.0 trillion or 75.4% from the target in 2011 (Rp 240.0 trillion). Compared to that of the same period in 2010 (Rp 149.6 trillion), it increases 20.9%.

Realization of Labor force absorption until September 2011 reached 333,156 people consisted of 100,991 people from domestic direct investments (PMDN) and 232,165 people from foreign direct investment (PMA). Compared to the realization of labor force absorption to the same period in 2010 (246,622 people), it increases 35.1%.

A.  The Investment Realization in Q3 2011

There is an increase of 14.5% in domestic direct investment realization (PMDN) in the third quarter 2011 period compared to the same period in 2010, from investment realization valued from Rp 16.6 trillion to Rp 19.0 trillion.

There is an increase of 15.7% in Foreign Direct Investment realization (PMA) in the third quarter 2011 compared to the same period in 2010; from Rp 40.1 trillion to Rp 46.4 trillion.

"In the midst of the uncertain world’s economic fluctuation in Europe and USA, we still manage to record the investment realization growth in the period of January to September 2011, the significant increase of investment realization compared to the same period in 2010. Furthermore, the jobs creation by the companies is also increase significantly“, said the Chairman of Indonesia’s Investment Coordinating Board, Mr. Gita Wirjawan.

The highlights of the investment realization of the domestic and foreign direct investment on Third Quarter 2011:

1.   Domestic Direct Investment Realization

Based on sectors (five biggest sectors), the domestic direct investment realization are: Food Crops and Plantation (Rp 3.6 trillion); Electricity, Gas, and Water Supply (Rp 3.3 trillion); Paper and Printing Industry (Rp 2.2 trillion); Non Metallic Mineral Industry (Rp 2.1 trillion); Mining (Rp 1.7 trillion).

Domestic direct investment realizations based on locations (five biggest locations) are: West Java (Rp 4.3 trillion); East Java (Rp 2.7 trillion); Special Territory of Jakarta (Rp 2.0 trillion); East Kalimantan (Rp 1.8 trillion) and Central Sulawesi (Rp 1.4 trillion).

2.   Foreign Direct Investment Realization
   

Based on sectors (five biggest), the foreign direct investment realization are: Transport, Storage, and Communication (US$ 1.1 billion); Mining (US$ 0.9 billion); Metal, Machinery and Electronic Industry (US$ 0.6 billion); Electricity, Gas, and Water Supply (US$ 0.5 billion); Chemical and Pharmaceutical Industry (US$ 0.3 billion).        

Foreign Direct Investment realization based on locations (five biggest locations) are: Special Territory of Jakarta (US$ 1.4 billion); West Java (US$ 0.9 billion); Banten (US$ 0.8 billion); Papua (US$ 0.4 billion); and Bali (US$ 0.3 billion).

       Based on country origin (five biggest countries), the foreign direct investment realization are: Singapore (US$ 1.3 billion); United States of America (US$ 0.5 billion); Netherland (US$ 0.4 billion);  South Korea (US$ 0.4 billion); and Japan (US$ 0.4 billion).

3.   Distribution of Project Location
   

        Distribution of project location in the third quarter 2011 outside Java is Rp 24.3 trillion (37.2%). Compared to the same period on 2010 of Rp 21.4 trillion, there is an increase of 13.6%.

B. Cumulative on January to September 2011

1.       The Cumulative investment realization on January to September 2011 is Rp 181.0 trillion; consists of Rp 52.0 trillion from domestic direct investment (PMDN) realization and Rp 129.0 trillion from foreign direct investment (PMA) realization.

2.       PMDN realization based on the business sectors (five biggest) are: Food Crops and Plantation (Rp 8.3 trillion); Food Industry (Rp 5.8 trillion); Non Metallic Mineral Industry (Rp 5.6 trillion); Transport, Storage and Communication (Rp 5.6 trillion); and Electricity, Gas and Water Supply (Rp 5.4 trillion).

        PMDN realization based on the project location (five biggest) are West Java (Rp 9.4 trillion); East Java (Rp 7.3 trillion); Special Territory of Jakarta (Rp 7.0 trillion); South Sulawesi (Rp 2.1 trillion); and Central Kalimantan (Rp 2.3 trillion).

3.       Realization of PMA based on the business sectors (five biggest) are Mining (US$ 3.4 billion); Transport, Storage and Communications (US$ 2.1 billion); Metal, Machinery and Electronic Industry (US$ 1.4 billion); Chemical and Pharmaceutical Industry (US$ 1.2 billion); and Electricity, Gas and Water Supply (US$ 1.2 billion)

        PMA realization based on project location (five biggest) are West Java (US$ 2.9 billion),

        Special Territory of Jakarta (US$ 2.9 billion); Banten (US$ 1.6 billion); Papua (US$ 1.2 billion);

        and North Sumatera (US$ 0.6 billion).

        PMA realization based on country origins (five biggest) are Singapore (US$ 3.2 billion), USA (US$ 1.4 billion);

        Netherlands (US$ 1.2 billion); Japan (US$ 1.2 billion);  and South Korea (US$ 0.8 billion).

4.    The distribution of the project location on January to September 2011 outside of Java is Rp 81.0 trillion (44.7%), compared to the same period in 2010 of Rp 55.3 trillion (38.3%), it increases 46.4%.

5.    The investment realization based on economic corridors on January to September 2011 are:

1. The investment realization of Sumatera economic corridors is Rp 21.8 trillion (12.0%), consist of Rp 8.1 trillion of PMDN and US$ 1.53 billion of PMA.  The dominant sectors for PMDN are Food Crops and Plantation (Rp 2.7 trillion); Paper and Printing Industry (Rp 2.1 trillion); Chemical and Pharmaceutical Industry (Rp 1.0 trillion); Food Industry (Rp 0.6 trillion); Mining (Rp. 0.5 trillion) and for PMA are Trade and Repair (US$ 0.02 billion); Livestock (US$ 0.007 billion); Transport, Storage and Communications (US$ 0.006 billion); Fishery (US$ 0.005 billion); Forestry (US$ 0.004 billion).
2.  The investment realization of Java economic corridors is Rp 99.9 trillion (55.2%), consist of Rp 27.1 trillion of PMDN and US$ 8.1 billion of PMA. The dominant sectors for PMDN are Transport, Storage, and Communications (Rp 5.3 trillion); Non Metallic Mineral Industry (Rp 3.5 trillion); Metal, Machinery and Electronic Industry (Rp 3.4 trillion); Food Industry (Rp 3.4 trillion); Paper and Printing Industry (Rp 3.0 trillion) and for PMA are Transport, Storage and Communications (US$ 2.1 billion); Metal, Machinery and Electronic Industry (US$ 2.1 billion); Chemical and Pharmaceutical Industry (US$ 0.8 billion); Electricity, Gas, and Water Supply (US$ 0.7 billion), and Trade and Repair (US$ 0.5 billion).
3. The investment realization of Kalimantan economics corridors is Rp 24.6 trillion (13.6%); consist of Rp 8.8 trillion of PMDN and US$ 1.8 billion of PMA. The dominant sectors by PMDN are Food Crops and Plantation (Rp 4.9  trillion); Mining (Rp 1.4 trillion); Food Industry (Rp 1.1 trillion); Metal, Machinery and Electronic Industry (Rp 0.8 trillion);  Chemical and Pharmaceutical Industry (Rp 0.3 trillion) and for PMA are Food Crops and Plantation (US$ 0.8 billion); Mining (US$ 0.7 billion); Food Industry (US$ 0.2 billion); Trade and Repair (US$ 0.1 billion); Wood Industry (US$ 6.4 million).
4. The investment realization of Sulawesi economic corridors is Rp 12.5 trillion (6.9%) consist of Rp 6.2 trillion of PMDN and US$ 0.7 billion of PMA. The dominant sectors for PMDN are Electricity, Gas, and Water Supply (Rp 2.6 trillion); Non Metallic Mineral Industry (Rp 2.1 trillion); Estate, Industrial and Office (Rp 0.7 trillion);  Food Crops and Plantation (Rp 0.3 trillion); Food Industry (Rp 0.3 trillion) and for PMA are Mining (US$ 0.9 billion);  Chemical and Pharmaceutical Industry (US$ 0.5 billion); Electricity, Gas and Water Supply (US$ 0.2 billion); Food Crops and Plantation (US$ 0.2 billion); Food Industry (US$ 0.1 billion).
5. The investment realization of Bali-Nusa Tenggara economic corridors is Rp 8.6 trillion (4.7%), consist of Rp 0.3 trillion of PMDN and US$ 0.9 billion of PMA. The dominant sectors for PMDN are Other Services (Rp 0.3 trillion); Food Crops and Plantation (Rp 33.7 billion); Electricity, Gas and Water Supply (Rp 27.5 billion); Hotel and Restaurant (Rp 11.1 billion); Mining (Rp 1.0 billion) and for PMA are Mining (US$ 0.4 billion); Electricity, Gas and Water Supply (US$ 0.2 billion); Hotel and Restaurant (US$ 83.8 million); Other Services (US$ 76.4 million) and Food Industry (US$ 61.6 billion).
6. The investment realization of Papua – Maluku economics corridors is Rp 13.6 trillion (7.5%), consist of Rp 1.4 trillion of PMDN and US$ 1.4 billion of PMA. The dominant sectors by PMDN are Wood Industry (Rp 0.5 trillion); Food Crops and Plantation (Rp 0.5 trillion); Food Industry (Rp 0.4 trillion); Livestock (Rp 72.9 billion); Trade and Repair (Rp 0.03 trillion) and for PMA are Mining (US$ 1.3 billion); Food Crops and Plantation (US$ 18.5 million); Forestry (US$ 3.4 million); Trade and Repair (US$ 3.8 million); Wood Industry (US$ 2.0 million).

“The investors’ trust to invest in Indonesia cannot be separated from the active participation of all components in society to create sense of security and wide distribution of information regarding investment activities in the country through printed and electronic publication, hence the efforts of developing policy/investment climate, investment incentives and the improvement of investment’s services in the provinces and districts/city have been be positively responded by the business society from domestic or foreign countries”, said Mr. Gita Wirjawan, the Chairman of Indonesia’s Investment Coordinating Board.

Further Information can be seen in the matrix attached.

For further information, please contact:

M.M Azhar Lubis

Deputy Chairman of Investment Monitoring and Implementation

Indonesia Investment Coordinating Board (BKPM)