Despite macro challenges, Indonesia targets 14% jump in investments at $43b in 2016

Despite the challenging macro-economic environment, Indonesia is hoping the country will attract higher foreign and domestic investments in 2016.

The country’s Investment Coordinating Board (BKPM) is expecting that investment realisation (or actual fund inflows) in 2016 could reach 594.8 trillion ($42.79 billion), up 14.4 per cent from 2015’s target Rp 519 trillion. While for 2015, the investment realisation could reach of Rp 540 trillion.

BKPM head Franky Sibarani said, the investment realisation over the past year has been dominated by five major countries, Malaysia, Singapore, Japan, South Korea and the United States.

In 2016, Indonesia is targeting foreign direct investments of Rp386.4 trillion and domestic investments of Rp308.4 trillion.

“Most of the investment—around 53 per cent–will target manufacturing sector (worth Rp313.5 trillion), up 17.2 per cent from 2015. We focus on raw materials and capital goods,” he said at a press conference on Friday.

He added, last year, the agency processed 17,238 permits with total investment commitment of Rp 1,852 trillion, up 45 per cent from 2015.

Some of the major projects that will kick off in 2016 are rubber company PT Synthetic Rubber Indonesia plant in Cilegon–the joint venture company of Compagnie Financiere Du Groupe Michelin and local rubber producer PT Chandra Asri Petrochemical Tbk (CAPC)–with total investment $90 million, a smelter plant for nickel in North Maluku over Rp 1 trillion and expansion of coal-gas fired in Cilegon, West Java $350 million.

BKPM is also not looking at revising the investment target for this year as Sibarani believes BKPM can net Rp4,500 trillion of principal permit from last year’s figure of Rp1,852 trillion.

So far, he stated, no investor has cancelled their investment after getting principal permits from BKPM.

Also Read: 

Indonesia sees 17% growth in FDI; Singapore tops inflows

Indonesia considers opening up hospitality sector to 100% foreign investment

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.