Jakarta (ANTARA News) - The Investment Coordinating Board (BKPM) has hinted the realization of investment may hit a record of Rp180 trillion this year if the government is able to improve infrastructure facilities and ensure energy supplies.
"Let`s wait and see. We hope the realization of investment can hit the record," BKPM Chief Gita Wirjawan said here on Wednesday.
The government has set itself the target of attracting Rp160 trillion worth of investment this year.
"But until the first semester of this year the realization of investment has reached Rp92.9 trillion, accounting for 58.1 percent of the target," he said.
The BKPM chief expressed optimism the realization of investment this year would exceed the government-set target of Rp160 trillion, helped by investors` increased confidence in the conducive investment climate.
"Foreign investors` confidence in the domestic market is getting higher and higher thanks to reports that the macro economic and political conditions of Indonesia are better than those of neighboring countries," he said.
To achieve the target, the government must make a serious effort to develop infrastructure facilities, such as roads and bridges, ensure power and gas supplies and issue policies conducive to the business world, he said.
He said the investment in the first half of 2010 rose 39.9 percent to Rp92.9 trillion from Rp66.4 trillion a year earlier, helped by expansion projects in mining, energy, telecommunications sectors and new investment in shoe, textile and electronic industries.
In the second quarter of 2010, investment increased to Rp50.8 trillion from Rp42.1 trillion the year before. (*)