The country’s investment czar said on Tuesday that realized foreign and domestic direct investment in the first quarter was expected to grow by 10 percent year on year as investors become increasingly confident about the nation’s economic prospects.
Gita Wirjawan, chairman of the Investment Coordinating Board (BKPM), declined to provide specific figures, saying the final numbers would be released before the end of April. But he expressed confidence that the country was on track to meet its target of 15 percent growth in investment this year, to Rp 160 trillion ($17.76 billion) from Rp 135 trillion last year.
As part of efforts to boost investment, the government will offer $7 billion of infrastructure projects, including toll roads and power plants, at an infrastructure summit on April 14-17, Gita said.
Over the next five years, the government hopes to see private investors build 20,000 kilometers of roads and 15,000 megawatts in electricity generating capacity through public-private partnerships.
The government has estimated that it needs $170 billion in investment over the next five years to maintain its GDP growth target of 6 percent to 7 percent a year. Only a third of that amount will be provided by the government, while the rest will have to come from the private sector, said Gita.
“So every year we have to search for Rp 200 trillion of private investment,” he said.
In addition, Gita announced that global footwear brands Mizuno and New Balance will would relocate their production to Indonesia. He did not provide details.
Harijanto, an official at the Indonesian Footwear Association (Aprisindo), said the two manufacturers have started building factories in Banten and expect to complete them by the end of this year.
“At the end of the year the factories could employ 15,000 people,” Harijanto said. “We project that the national footwear industry could post revenue of $2 billion this year, producing 300,000 pairs of footwear.”