Indonesia recorded an 80% on-year increase in actual investment in the first quarter of the year, head of the official Investment Board (BKPM) Muhammad Lutfi said Monday (14/4/08), Dow Jones reported.
He added that investment in telecommunications, pulp and paper projects accounted for the largest portion during the January-March period.
Based on official data at BKPM, implemented investment projects were valued at $14.4 billion in 2007, up 71.69% from the previous year.
In the first quarter of 2008, the value of implemented projects shot up 80% from $4.48 billion in the same period last year.
The data recorded by the board excludes investment in the oil, gas, mining, and financial sectors.
Lutfi predicted that the country's investment sector will grow 15.2% this year. Rising prices of primary commodities will contribute to the investment growth, he said.
Growing demand for working capital credits, up to Rp188 trillion in February from Rp183.8 trillion in December, 2007 indicated continued expansion of the investment sector, an official of the National Development Planning Board said.
Head of fiscal policy at the finance ministry Anggito Abimanyu said the increase in the realization of direct investment in the first quarter of 2008 showed that the global economic slowdown had not affected flows of investment into the country.
But, he said, a downturn could be expected late this year or early next year.