Indonesia pocketed Rp 165.8 trillion (US$12.5 billion) in investment in the first quarter of the year, or 24.4 percent of the 2017 investment target of Rp 678.8 trillion, the Investment Coordinating Board (BKPM) announced on Wednesday.
This figure is a 13.2 percent increase from the Rp 146.5 trillion in investment recorded in the same quarter last year.
Investment from local investors progressed significantly by 36.4 percent year-on-year (yoy) to Rp 68.8 trillion, while investment from foreign investors only grew by 0.94 percent to Rp 97 trillion.
“The seemingly stagnant growth in foreign investment is because of the stronger rupiah. We used a Rp 13,900 per dollar calculation in the first quarter last year but Rp 13,300 per dollar in the first quarter this year,” said BKPM head Thomas Lembong during a press conference on Wednesday.
In dollar value, foreign investment continued to show a stable increase of 5.7 percent to $7.3 billion. The pace was higher than the 4.5 percent recorded within with Q1 2015 to Q1 2016 period.
A majority, or 80 percent of total local and foreign investment in the quarter, was fresh investment, while 20 percent was expansion.
“This is a sign that interest to do business here is still high,” he added.
The top investment sectors are mining, food, transportation, warehouses and telecommunications. The top three investment destinations are West Java, Jakarta and East Java.
Singapore, Japan and China remain the top three investors – just like they were in the first quarter of 2016 – with $2.1 billion, $1.4 billion and $600 million in investment, respectively.