Tue, 26 Jul 2011

Jakarta (ANTARA News) - The Investment Coordinating Board
(BKPM) is optimistic its investment target of Rp240 trillion for this year can be achieved although the first-semester investment inflows reached Rp115.6 trillion or 48.16 percent.

Normally, investment inflows are slow in the first and second quarters but they would revive in the following six months, BKPM Chief Gita Wirjawan said here on Thursday.

"The tradition goes like that. Investment will reach its peak in the third and fourth quarters," he said.

Data from the BKPM show investment reached Rp115.6 trillion in the first half of 2011 consisting of domestic investment worth Rp33 trillion and foreign investment worth Rp82.6 trillion.

"Compared to the same period the year before domestic investment soared 50.7 percent and foreign investment rose 16.2 percent. This is enough to reflect an increase in investment inflows in the two following quarters," he said.

A number of countries such as South Korea and India were very enthusiastic in investing in Indonesia. They were expected to overtake other countries in terms of foreign investment in Indonesia, he said.

In the first half of 2011, West Java remained the biggest destination of foreign investment with US$2 billion, followed by Jakarta US$1.5 billion, Papua US$0.8 billion, Banten US$0.8 billion and South Sumatra US$0.5 billion.

"Papua and South Sumatra emerged as new players in terms of attracting foreign investment. This suggests that investment is no longer concentrated in Java," he said.

Overall, the infrastructure and manufacturing sectors were recorded as the biggest recipients of foreign and domestic investments.