23 projects worth Rp102 trillion prepared for investors: Investments starting to distribute evenly
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - 23 Proyek Senilai Rp102 Triliun Disiapkan untuk Investor: Penyebaran Investasi Mulai Merata
07 October 2021
By: Triyan pangastuti
Jakarta – The Investment Ministry/Investment Coordinating Board (BKPM) admits that they have prepared 23 projects scattered in various provinces and sectors that investors can invest in worth Rp102 trillion this year. The 23 projects are fitted with accurate information and data on their investment opportunity, especially the strategic priority projects.
Expert Staff for Investment Competitiveness Improvement of the Investment Ministry/BKPM, Heldy Satrya Putera, said that comprehensive information was expected to help investors in deciding to invest in Indonesia, which would boost the national economic recovery.
“How do we attract investors? By preparing detail and complete information. We have created a map of priority investment opportunities. In 2021, there are 23 projects that have been prepared as pre-feasibility studies worth Rp102 trillion,” Heldy said during the event Sinar Mas 83rd Anniversary Dialogue Forum: 2022 Economic Outlook on Wednesday (6/10).
In detail, he explained that the 23 projects consisted of six projects in the tourism sector, which included Borobudur Priority Tourism Destination (DPP) in East java, Lombok Mandalika DPP in West Nusa Tenggara, Labuan Bajo DPP in East Nusa Tenggara, Wakatobi DPP in Southeast Sulawesi, Manado Likupang DPP in North Sulawesi, Raja Ampat DPP in West java.
Then, the other 17 projects consist of projects in the industrial estate development sector that is integrated with supporting infrastructure such as Ladong Industrial Estate (KI) in Aceh, Tanjung Buton KI in Riau, projects in the smelter industry, and Galang Batang Special Economic Zone (SEZ).
“Through the investment opportunity map, we explain the location of the projects, the soil condition at the project site that should be clean and clear, as well as the legality and the financial aspects. Then, we have created the feasibility studies,” he added.
So, Heldy continued that, with these investment opportunities, investors were expected to make decisions more quickly. “For example, the tourism sector currently needs hotels to be constructed near Borobudur temple,” he stated.
Java-outside Java
During the occasion, Heldy said that investment distribution in Java and outside Java was starting to be more balanced. Moreover, investments are currently more dominant outside Java. This shows the success of the government’s program.
Investment realisation outside Java from April to June 2021 reached Rp113.8 trillion or 51% of the total investment target. Meanwhile, investments in Java reached Rp109.2 trillion or 49% of the investment target. So, investment realisation in Java in the first half of 2021 reached Rp214.53 trillion and investments outside Java reached Rp228.23 trillion.
“Investment distribution in this era tends to favour Java, which means the program implemented by the government is still ongoing,” he said.
The second factor is that outside Java is attractive for investors who are supported by large resources and road access or infrastructure.
Next, he said that investment realisation from January to June 2021 reached Rp442.8 trillion or increased by 10% compared to 2021 that recorded Rp402.6 trillion investment realisation. This amount is equal to 49.2% of the investment target this year that reaches Rp900 trillion and sets to absorb 623,715 workers.
Investment realisation from foreign capital investment (PMA) reaches Rp228.5 trillion, which increases by 16.8% yearly. Then, investment realisation from domestic investment contributes 48.8% or Rp213.3 trillion. “Investment realisation during the pandemic is still quite high. In the first half of 2021, 623,715 workers were absorbed,” he stated.
Ten countries with the largest investment in Indonesia are Singapore, Hongkong, China, the Netherlands, South Korea, Japan, the United States of America, Malaysia, and Thailand.
“The 2021 investment target reaches Rp858.5 trillion. It is in the RPJMN (National Mid-Term Development Plan) but the President expects to realise investments of Rp900 trillion in 2021. This means that our investment target is increasing, but we hope that players can see this as an opportunity as Indonesia will continue to boost investments to grow significantly,” he concluded.
