Thu, 21 Apr 2011
From: The Jakarta Globe
By Francezka Nangoy

Amid a bumper day of positive economic news for the country, the Investment Coordinating Board announced that foreign direct investment in Indonesia rose 11.6 percent in the first quarter from a year earlier.

News of the increase from the board, also known as the BKPM, complemented a standout day on the Jakarta Composite Index. The JCI rose 62.11 points, or 1.7 percent, to a record close of 3,794.76.

Sustained confidence in Indonesia’s economy showed as foreign direct investment rose to Rp 39.5 trillion ($4.6 billion) from Rp 35.4 trillion a year earlier, while domestic investment jumped to Rp 14.1 trillion from Rp 6.7 trillion a year earlier.

“Investors’ level of confidence can be seen here, especially after the central bank showed all the necessary statistics to support it and with rating agencies backing it up with improved ratings for Indonesia,” said Azhar Lubis, deputy chairman of investment controlling and implementation at BKPM.

Total realized investment grew 27.3 percent to Rp 53.6 trillion. Azhar said total investment is projected at Rp 240 trillion this year, with foreign investment accounting for Rp 170.4 trillion of that amount.

Private consumption accounts for about two-thirds of Indonesia’s economy, while investment makes up about 15 percent. The economy is projected to expand by 6.5 percent this year, up from 6.1 percent growth last year.

Azhar said the growth in investment was triggered by growing confidence in Indonesia’s business environment, as well as concrete steps from the government to improve the investment climate.

Destry Damayanti, an economist at Mandiri Sekuritas, said the news from BKPM showed Indonesia’s rising stature among foreign investors.

“This is clearly a positive sign. The talk about it being a good time to invest in Indonesia is finally starting to materialize,” Destri said on Wednesday. “The BKPM is targeting a 15 percent increase in foreign investment, so I think the first-quarter progress is on track and on schedule.

“The investment trend in the near future is also good. One of the drivers is the improvement in Indonesia’s rating, which indicates lower investment risk, better investment climate and good prospects for [economic] development.”

In January, Moody’s Investor Service upgraded Indonesia’s rating to one level below investment grade at Ba1. In February, Fitch Ratings upgraded Indonesia to BB+, while Standard & Poor’s did likewise in March.

Singapore is still Indonesia’s top foreign investor with $1.14 billion in 142 projects. Azhar pointed out that investors from Singapore are actually multinational companies that are not necessarily based in Singapore, but the subsidiaries in Singapore are the ones investing in Indonesia.

The United States was second after Singapore with 24 projects worth $359.1 million, while Japan followed in third place with $345.2 million.

The mining sector was the favorite among foreign investors, receiving $1.02 billion in 79 projects. Infrastructure projects, such as power plants, received $606.7 million, while transportation and communications received $593.1 million.

“We want more investment, but we also know which sectors need more attention than others,” Azhar said.

He also said the fate of a discussed tax holiday would be determined “around August.” The tax holiday would be directed toward investments considered a pioneer in their field or those in infrastructure.



News Search/Filter
Transaction Rates
18 Oct 18
Buy
Sell
AED1
4,141.49
4,141.49
AFN1
199.99
199.99
ALL1
140.30
140.30
AMD1
31.46
31.46
ANG1
8,568.25
8,568.25
AOA1
50.48
50.48
ARS1
420.22
420.22
AUD1
10,816.81
10,816.81
AWG1
8,451.19
8,451.19
AZN1
8,935.16
8,935.16
BAM1
8,979.53
8,979.53
BBD1
7,606.06
7,606.06
BDT1
179.43
179.43
BGN1
8,944.94
8,944.94
BHD1
40,356.45
40,356.45
BIF1
8.49
8.49
BMD1
15,212.12
15,212.12
BND1
10,786.79
10,786.79
BOB1
2,200.92
2,200.92
BRL1
4,125.21
4,125.21
BSD1
15,212.12
15,212.12
BTC1
97,989,166
97,989,166
BTN1
206.61
206.61
BWP1
1,429.08
1,429.08
BYN1
7,216.61
7,216.61
BZD1
7,566.64
7,566.64
CAD1
11,678.57
11,678.57
CDF1
9.30
9.30
CHF1
15,291.65
15,291.65
CLF1
650,646.92
650,646.92
CLP1
22.57
22.57
CNH1
2,195.64
2,195.64
CNY1
2,195.99
2,195.99
COP1
4.96
4.96
CRC1
25.61
25.61
CUC1
15,212.12
15,212.12
CUP1
590.76
590.76
CVE1
159.13
159.13
CZK1
677.20
677.20
DJF1
85.43
85.43
DKK1
2,345.08
2,345.08
DOP1
304.30
304.30
DZD1
128.33
128.33
EGP1
849.48
849.48
ERN1
1,014.30
1,014.30
ETB1
547.06
547.06
EUR1
17,495.83
17,495.83
FJD1
7,076.55
7,076.55
FKP1
19,929.83
19,929.83
GBP1
19,929.83
19,929.83
GEL1
6,189.35
6,189.35
GGP1
19,929.83
19,929.83
GHS1
3,151.95
3,151.95
GIP1
19,929.83
19,929.83
GMD1
307.71
307.71
GNF1
1.67
1.67
GTQ1
1,966.19
1,966.19
GYD1
72.71
72.71
HKD1
1,940.48
1,940.48
HNL1
631.36
631.36
HRK1
2,359.01
2,359.01
HTG1
213.40
213.40
HUF1
54.32
54.32
IDR1
1.00
1.00
ILS1
4,172.62
4,172.62
IMP1
19,929.83
19,929.83
INR1
206.85
206.85
IQD1
12.75
12.75
IRR1
0.35
0.35
ISK1
127.50
127.50
JEP1
19,929.83
19,929.83
JMD1
114.95
114.95
JOD1
21,425.37
21,425.37
JPY1
135.06
135.06
KES1
150.61
150.61
KGS1
221.98
221.98
KHR1
3.72
3.72
KMF1
35.65
35.65
KPW1
16.90
16.90
KRW1
13.48
13.48
KWD1
50,204.20
50,204.20
KYD1
18,250.19
18,250.19
KZT1
41.89
41.89
LAK1
1.78
1.78
LBP1
10.03
10.03
LKR1
89.02
89.02
LRD1
96.89
96.89
LSL1
1,063.38
1,063.38
LYD1
11,019.69
11,019.69
MAD1
1,605.33
1,605.33
MDL1
895.35
895.35
MGA1
4.29
4.29
MKD1
285.16
285.16
MMK1
9.56
9.56
MNT1
6.10
6.10
MOP1
1,883.91
1,883.91
MRO1
42.61
42.61
MRU1
423.61
423.61
MUR1
441.44
441.44
MVR1
983.96
983.96
MWK1
20.91
20.91
MXN1
805.68
805.68
MYR1
3,658.25
3,658.25
MZN1
251.37
251.37
NAD1
1,055.09
1,055.09
NGN1
41.79
41.79
NIO1
473.31
473.31
NOK1
1,851.95
1,851.95
NPR1
129.13
129.13
NZD1
9,955.55
9,955.55
OMR1
39,509.75
39,509.75
PAB1
15,212.12
15,212.12
PEN1
4,562.72
4,562.72
PGK1
4,529.25
4,529.25
PHP1
281.93
281.93
PKR1
114.56
114.56
PLN1
4,077.00
4,077.00
PYG1
2.56
2.56
QAR1
4,178.00
4,178.00
RON1
3,749.32
3,749.32
RSD1
147.71
147.71
RUB1
232.06
232.06
RWF1
17.28
17.28
SAR1
4,054.78
4,054.78
SBD1
1,915.81
1,915.81
SCR1
1,096.72
1,096.72
SDG1
322.22
322.22
SEK1
1,696.62
1,696.62
SGD1
11,037.85
11,037.85
SHP1
19,929.83
19,929.83
SLL1
1.81
1.81
SOS1
26.24
26.24
SRD1
2,039.70
2,039.70
SSP1
116.77
116.77
STD1
0.71
0.71
STN1
715.02
715.02
SVC1
1,737.96
1,737.96
SYP1
29.53
29.53
SZL1
1,063.97
1,063.97
THB1
467.51
467.51
TJS1
1,614.41
1,614.41
TMT1
4,333.96
4,333.96
TND1
5,358.28
5,358.28
TOP1
6,597.06
6,597.06
TRY1
2,719.13
2,719.13
TTD1
2,256.48
2,256.48
TWD1
493.62
493.62
TZS1
6.64
6.64
UAH1
544.74
544.74
UGX1
4.02
4.02
USD1
15,212.12
15,212.12
UYU1
463.02
463.02
UZS1
1.85
1.85
VEF1
0.06
0.06
VND1
0.65
0.65
VUV1
136.76
136.76
WST1
5,820.18
5,820.18
XAF1
26.67
26.67
XAG1
222,341.52
222,341.52
XAU1
18,594,002.10
18,594,002.10
XCD1
5,628.80
5,628.80
XDR1
21,247.88
21,247.88
XOF1
26.67
26.67
XPD1
16,352,376.19
16,352,376.19
XPF1
146.61
146.61
XPT1
12,664,001.29
12,664,001.29
YER1
60.77
60.77
ZAR1
1,067.04
1,067.04
ZMW1
1,280.75
1,280.75
ZWL1
47.19
47.19
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services