Malaysia leads investment in Indonesia with Rp 34.9 trillion

The Investment Coordinating Board (BKPM) has released the latest data on investment realisation for the first semester of 2015. The data shows Malaysia as the largest source of foreign investment in Indonesia, with approximately USD 2.6 billion, or around Rp 34.9 trillion. The second largest investor was Singapore, with USD 2.3 billion, or approximately Rp 31 trillion.

BKPM Head Franky Sibarani revealed that Malaysia invested heavily in the telecommunications sector. "Malaysia occupies the top spot among the five largest countries because it is investing massively in telecommunications," Franky stated during a press conference at the BKPM office in South Jakarta on Monday.

Franky added that the third largest investor was Japan, with USD 1.6 billion, followed by South Korea with USD 0.8 billion and the United States with USD 0.6 billion. He noted that total foreign direct investment (FDI) realisation for the first six months of 2015 reached Rp 174.2 trillion, an increase of 67.1 per cent compared to Rp 150 trillion in the same period the previous year. "In percentage terms, Malaysia contributed 18.65 per cent of the total FDI realisation during the first semester of 2015," he said.

BKPM Deputy for Investment Implementation Control, Azhar Lubis, added that Malaysia is significantly boosting its investment in telecommunications by supporting PT XL Axiata Tbk’s programme to transition its network from 3G to 4G across all regions.