DEPOK (eNBe Indonesia) - The visit of President Joko "Jokowi" Widodo to Uni Emirat Arab (UEA) creates a business and investment commitment of US$32.7 billion, equivalent to Rp468 trillion, consisting of 19 cooperation agreements.
The cooperation between Indonesia Investment Authority (INA) and Abu Dhabi Growth Fund (ADG) are DB World, floating solar panel between Masdar and Pertamina, refinery in Balikpapan, manufactur and distribution ogf vaccine, and bio product.
INA and DP World signed a longterm stategic alliance agreement for improving the quality of logistic and maritime services with investment value of US$7.5 billion.
Other cooperations with G42 countries include smart cities, telecommunication, and the development of genomic laboratorium.
The Investment Ministry Bahlil Lahadalia is also set to meet and make an investment commitment with US corporation, focusing on the downstream sector, a value-added industrialization. With investors in Glasgow, Indonesia gained investment commitment of US$9.2 billion.
Bill Gates is reportedly interested tom invest in PT Biofarma, holding of state pharmaceutical firms, Kimia Farma (KAEF) and Indofarma (INAF). Said investment is called as the transfer of knowlege for developing mRNA vaccine through Gates Foundation.
Meanwhile Bahlil Lahadalia is optimistic to achieve the investment target of Rp900 trillion this year, as the investment realization as of September 2021 reached Rp659.4 trillion or 73.3% of this year's target.
Year on year (y/y) the investment grew 7.8% for January-September 2021 period.
The foreign investment reached Rp331.7 trillion in said period, grew 9.9% y/y while domestic investment reached Rp327.7 trillion, grew 5.8% y/y. The investment outside Java dominated, reaching Rp216.7 trillion, grew 3.7% y/y.
In the third quarter (Q3) of 2021, the investment realization for outside Java reached Rp112.5 trillion or 51.9% of total investment, while investment realization for Java island reached Rp104.2 trillion or 48.1% of total investment.
Foreign investment realization declined 11% in third quarter of 2021, compared to previous quarter, to Rp103.2 trillion. It also declined 2.7% y/y.
While domestic investment realization grew 6.8% quarter on quarter (q/q) to Rp113.5 trillion in third quarter this year. It also grew 10.3% y/y. And the absorption of workforce reached 288,687 in Q3 this year.
The Ministry for Energy and Mineral Resources (ESDM) targets investment of US$22.59 billion in 2022, through offering via auction 12 working areas of oil and gas, developing under two schemes; gross split and cost recovery.
This year, the ministry has offered 6 working areas (South CPP, Sumbagsel, Rangkas, Liman, Merangin III, North Kangean).
The investment in manufacture sector reached Rp237 trillion in January-September 2021 periodm grew 13.39% y/y, consisting of building new plants or business expansion.
Domestic investment in this sector reached Rp63 trillion while foreign investment reached Rp173.8 trillion.
The investment in food industry also rose 21.79% y/y to Rp49 trillion in January-September 2021 period, with foreign investment amounting to US$2.02 billion, jumped 75.9% y/y. While domestic investment declined 14.92% y/y to Rp20.43 trillion in said period.***