Why Indonesia : Investment Performances


The Investment Coordinating Board of the Republic of Indonesia (BKPM) announces that the realization of investment in 2016 (Full Year) reached Rp612.8 trillion, increasing by 12.4 percent, as compared to Rp545.4 trillion in 2015. The total investment realization in 2016 which is Rp 612.8 trillion, surpasses national target in 2016 by 3.0% (the national target for investment in 2016 is Rp 594.8 trillion).

“The investment realization in 2016 that exceeds national target by 3.0% shows a positive sign. It shows not only that the investment performance still growing in the midst of global and regional economic slowdown, but also shows a multiplier effect, such as creating more work opportunities. It also portrays a steady investor trust to the Indonesian economy, besides the prospect of long-term economic growth in the coming years”

Based on location, The distribution of project location in 2016 in Java Island is Rp 328.3 trillion (53.6%), while outside Java Island is Rp 284.5 trillion (46.4%). The portion of outside Java Island is increased by 14.4% compared to the same period in 2015 (Rp 248.7 trillion). Based on location, the top 5 provinces that absorbed the highest FDI and DDI are: West Java (Rp 105.3 trillion); East Java (Rp 72.9 trillion); Special Territory of Jakarta (Rp 58.7 trillion); Banten (Rp 52.4 trillion); and South Sumatera (Rp 47.1 trillion).

FDI Investment profiles in 2016

  • FDI realization based on sector (five biggest sectors) are: Metal, Machinery and Electronic Industry (US$ 3.9 billion); Chemical and Pharmaceutical Industry (US$ 2.9 billion); Paper and Printing Industry (US$ 2.8 billion); Mining (US$ 2.7 billion); and Transport Equipment and Other Transport Industry (US$ 2.4 billion). Meanwhile if the industrial sectors are combined, it can be seen that the industrial sectors contribute US$ 16.7 billion atau 57.6% to the total FDI realization.
  • FDI realization based on location (five main locations) are: West Java (US$ 5.5 billion); Special Territory of Jakarta (US$ 3.4 billion); Banten (US$ 2.9 billion); South Sumatera (US$ 2.8 billion); and East Java (US$ 1.9 billion).
  • Foreign Direct Investment realization based on country of origin (five leading countries) are: Singapore (US$ 9.2 billion); Japan (US$ 5.4 billion); People’s Republic of China (US$ 2.7 billion); Hong Kong (US$ 2.2 billion); and Netherlands (US$ 1.5 billion).