Fri, 20 Jan 2012
Jakarta (ANTARA News) - Domestic and foreign investment in Indonesia grew 20.5 percent to Rp251.3 trillion last year from Rp208.5 trillion the year before, the Investment Coordinating Board (BKPM) said.

"Despite the economic crises in Europe and the US, investment in Indonesia showed very good growth," BKPM Chief Gita Wirjawan who is also the trade minister said at the Jakarta International Expo here on Thursday.

The increasing investment suggested that the investment climate, services and policies were getting better, he said.

In 2011, foreign investment inflows reached Rp175.3 trillion, up 18.45 percent from Rp148 trillion a year earlier, he said.

Meanwhile, domestic investment grew 25.61 percent to Rp76 trillion last year compared to Rp60.5 trillion the year before, he said.

Overall, foreign and domestic investment in the country reached Rp251.3 trillion last year, outstripping the government-set target of Rp240 trillion, he said.

"The 2011 investment achievement laid a basis for international rating agencies, such as Fitch Rating and Moody`s to upgrade Indonesia`s rating to investment grade," he said.

The board noted that the greatest chunk of domestic investment last year went to food and plantation industries with Rp9.4 trillion, followed by paper, paper product and printing industries Rp9.3 trillion, electricity and water sectors Rp9.1 trillion, transportation, warehousing and telecommunication sectors Rp8.1 trillion and food industry Rp8 trillion.

Transportation, warehousing and communication sectors attracted the largest amount of foreign investment last year with US$3.8 billion, followed by the mining sector US$3.6 billion, electricity, gas and water sectors US$1.9 billion, metal, metal product, machinery and electronic industries US$1.8 billion, and base chemical, chemical and pharmaceutical product industries US$1.5 billion.

Jakarta remained on top of foreign investment destination with US$4.8 billion, followed by West Java US$3.8 billion, Banten US$2.2 billion, Papua US$1.3 billion and East Java US$1.3 billion.

Singapore topped the list of foreign investment source countries with US$5.1 billion, with the US trailing behind in the second place with US$1.5 billion, the Netherlands in third place with US$1.4 billion, and South Korea in fourth place with US$1.2 billion.(*)



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