DEPOK (eNBe Indonesia) - The Investment Ministry or the Coordinating Investment Board (BKPM) Ministry said it had executed some stagnant investment projects worth Rp517.6 trillion, representing 73.1% of total stagnant investment projects (Rp708 trillion). The Ministry facilitated said projects, both permit or license, and all processes until the production phase.
Said investment projects facilitated include Pertamina Rosneft with an investment value of Rp211.9 trillion, Lotte Chemical Rp61.2 trillion, PT Indo Raya Tenaga Rp58.1 trillion, Vale Indonesia Rp39.2 trillion, PT Tanjung Jati Power Rp38 trillion, and Hyundai Rp21.7 trillion.
Others are Kobexindo Rp14 trillion, Indonesia Power Rp9.5 trillion, PT Multimas Nabati Asahan Rp7.7 trillion, PT Tenaga Listrik Bengkulu Rp5.2 trillion, PT GCL Indo Tenaga Rp2.7 trillion, CJ Cheil Jedang Rp2.4 trillion, and PT Galempa Sejahtera Bersama Rp2 trillion.
The Investment Ministry also facilitated investment projects of Masdar Rp1.8 trillion, PT Sumber Mutiara Indah Perdana (SMIP) Rp1.8 trillion, PT Minahasa Cahaya Lestari Rp1.8 trillion, Malindo Rp1.1 trillion, BP Rp1 trillion, Pertamina Rp6 trillion, PT Halmahera Persada Lygend Rp5.4 trillion, and Gorontalo Listrik Perdana Rp2.8 trillion. Other projects are Jambi Integrated City Rp2.4 trillion, PLN Proyek Hululais Rp2.3 trillion, PT Sulawesi Cahaya Mineral Rp1.4 trillion, First Pacific Rp14.7 trillion, and others Rp1.4 trillion.
By sector, the communication sector led the investment during the first half (H1) of 2021, a new high trend both from domestic and foreign investors. For foreign direct investment (FDI), the second-largest investment went to transportation, warehouse, and telecommunication, which reached US$1.8 billion or 11% of total foreign investment realization in H1 this year. In comparison, domestic direct investment (DDI) recorded an investment value of Rp27 trillion for transportation, warehouse, and telecommunication sectors, or 13% of total domestic investment realization.
In the H1 of 2021, the investment realization reached Rp442.7 trillion or 49.2% of target for this year (Rp900 trillion), creating 623,715 jobs. The foreign investment realization grew 16.8% year on year (y/y) in H1 this year, while domestic investment realization rose 3.5% y/y. Other sectors also attracted investment appetite, both for foreign and domestic investors, are the basic metal industry, housing, food industry, mining, construction, electricity, gas, and water.
For 2022, President Joko “Jokowi” Widodo urged BKPM to achieve an investment target of Rp1,200 trillion, helping to lift the country’s gross domestic product (GDP) to above 5%. Based on the strategic plan of BKPM for the 2020-2024 year, the investment realization is set for Rp4,983.2 trillion.
Jokowi earlier revealed that investment is the key to economic recovery and accelerating economic growth, especially amid the COVID-19 pandemic. The Cabinet has made some breakthroughs to boost investment, create more jobs, and attract global capital inflow.
Jokowi stressed that the investment is the bridge to transforming the economy, from consumption-based to the productive-based, directed to the manufacturing sector and the high value-added downstream. The Job Creation Bill and the Omnibus Law serve the ease of business opening and provide incentives, protecting the cooperatives and micro-small-medium business segments and the national industry. Jokowi noted that the business permit or license award system is electronically integrated, called the online single submission (OSS), based on risk. The Government has also set up a task force for accelerating the investment.
Meanwhile, Marita Alisjahbana, Chief Risk Officer of Indonesia Investment Authority (INA), said some foreign investors had expressed their investment plan in Indonesia through the government-to-government (G to G) scheme with a value of US$16 billion. The Uni Emirat Arab (UEA) plans investment of US$10 billion, Japan Bank for International Cooperation (JBIC) plans investment of US$4 billion, and US International Development Finance Corporation (US DFC) plans investment of US$2 billion.
INA has invited three foreign investors to invest in toll road projects. They are Caisse de depot et placement du Quebec (CDPQ), APG Asset Management (APG), and Abu Dhabi Investment Authority (ADIA), with a total investment commitment of US$3.75 billion.***