Investment Up 30.6 Pct In First Quarter

Jakarta, April 22 (Antara) - Foreign and domestic investment rose 30.6 percent to Rp93.0 trillion in the first quarter from Rp71.2 trillion in the same period last year, the Investment Coordinating Agency, BKPM, said. "The investment growth in the first quarter this year was driven by improvement in investment climate which is kept being improved to assure business certainty in the country," BKPM chief Chatib Basri said here on Monday. He said cumulatively the realization of investment in the first quarter reached Rp93 trillion consisting of Rp27.5 trillion in domestic investment, which was up 39.6 percent, and Rp65.5 trillion in foreign investment, which was up 27.3 percent from the same period last year. "Overall during the January-March 2013 period investment also spread to regions outside Java while the role of domestic investment has been encouraging," he said. He said BKPM along with other ministries concerned and local governments would continue improving the quality of service to investors, simplifying procedures and accelerating process of licensing for investment. Based on sectors the biggest domestic investment in the last three months was recorded in the mining industry reaching Rp6 trillion followed by transportation, warehouse and telecommunication recorded at Rp6 trillion, food industry at Rp4 trillion, basic metal, metal products, machinery and electronic industries at Rp1.8 trillion and electricity, gas and water industry Rp1.7 trillion. In terms of location, five regions in East Java have drawn the biggest domestic investment in the period reaching Rp9 trillion, followed by East Kalimantan Rp4.8 trillion, South Kalimantan Rp3.4 trillion and North Sumatra Rp2 trillion and Jakarta Rp1.9 trillion. The biggest foreign investment meanwhile was recorded in West Java totaling US$1.3 billion, followed by Banten at US$1.1 billion, Papua US$0.8 billion, East Java US$0.6 billion and Riau US$0.6 billion. Based on countries of origin Japan was recorded as the biggest investor with its investment reaching US$1.2 billion (16.3 percent) in the period. The US fell second with its investment at US$0.9 billion (12.6 percent), followed by South Korea at US$0.8 billion (11 percent), Singapore at US$0.6 billion (8.7 percent) and Britain at US$0.5 billion (7.7 percent). "Japan in the first quarter of 2013 realized the biggest investment beating Singapore which has so far dominated foreign investment in the country. Japan`s big investment was recorded in the automotive sector," Chatib said. Five sectors receiving biggest investment are mining recorded at US$1.4 billion, basic chemical, chemical goods and pharmaceutical industry US$1.2 billion, basic metal, metal goods and electronic industry US$1.0 billion, transport equipment and other transportation service industry US$0.9 billion, paper, paper products and printing US$0.6 billion. The biggest foreign and domestic investment projects in the first quarters are located outside Java worth Rp44.4 trillion or 47.7 percent, which was up 32.1 percent compared to Rp33.6 percent or 47.2 percent in the same period last year. "The increasing distribution of both foreign and domestic investment outside Java shows that balancing between Java and outside Java has occurred. So, the view that economy is only moving in Java is no longer true," Chatib said. Regarding employment he said in the first quarter this year a total of 361,924 workers had been absorbed in the investment projects rising from 358,385 in the same period last year. "During the period domestic investment projects absorbed 148,521 workers while foreign investment projects 213,403. Foreign and domestic investment projects are expected to indirectly multiply employment by up to four times," he said.