Realization of investment
projects in quarter IN [October-December] 2013 was posted at Rp 105.3 trillion;
for the second time since quarter III/2013 investment realization broke through
Rp 100 trillion. Such was the latest data of the Coordinating Board of
Investment [BKPM].
Compared to attainment of the same period of 2012, there
had been increasing investment realization of Quarter I to IV were accumulated,
total investment realization 26.4% of Rp83.3 trillion. If investment
realization project [January-December] was Rp398.6 trillion consisting of
realization of investment of quarter I Rp93 trillion, quarter II Rp99 trillion,
quarter III Rp100.5 trillion and quarter IV Rp105.3 trillion. The investment
realization attainment exceeded BKPM investment target of 2013 amounting to
Rp390.3 trillion.
In quarter IV 2013 realization of Domestic Investment
[PMDN] came to Rp34 trillion and realization of Foreign Investment [PMA]
amounting to Rp71 trillion while total realization of PMDN Investment came to
Rp128 trillion and realization of PMA amounting to Rp270.4 trillion.
By year on year, growth of Domestic Investment [PMDN
2013] was highest growth since 2010with increased price of 39%. Improvement of
business through one-stop service and fostered coordination with the provincial
Government proved BKPM’s seriousness to perform which showed result in PMDN
growth.
Based on area-based investment distribution in quarter IV
2013 or through January-December 2013, investment in Java was greater than
outside Java. Investment yields in Java in quarter IV was posted at Rp61.7
trillion and investment realization outside Java was Rp43 trillion while in period
of January-December 2013 investment realization in Java was Rp230 trillion and
outside Java Rp168 trillion.
Investment realization over the period of
January-December 2013 based on 5 biggest business sector was electricity, gas
and water posted at Rp25.8 trillion, mining Rp18.8 trillion, F & B Rp15.1
trillion; transportation, warehousing and telecommunication Rp13.2 trillion;
basic chemical industry, chemical goods and pharmaceutical Rp8.9 trillion. PMDN
realization based on project location the biggest in East Java Rp34.8 trillion,
East Kalimantan Rp15.8 trillion and Central Java Rp12.6 trillion.
PMA realization based on 5 leading sectors were mining
USD 4.8 billion, transportation and transportation vehicles USD 3.7 billion;
basic metal industry, metal goods and electronics USD 3.3 billion. Distribution
of PMA realization based on location were: the biggest West Java [USD 7.1
million], Banten [USD 3.7 billion] and East Java [USD 3.4 billion].
It might be concluded that investment realization in 2013 could repeat in 2014 where BKPM must
pursue investment target of Rp450 trillion. For that matter the policy to be
adopted was acceleration of public service and permit application service for
electricity installation, telephone, water, IMB Building Permit, taxpaying, and
issuance of SIUP permit.
For investments in certain sectors, it was advisable for
BKPM to make studies whereby to make tax holiday. It was advisable if the
coming investors were directed and prioritized to the economic sector which had
enough support of raw materials and auxiliary materials at home which meant
import was not necessary. It became indispensable to build industry of raw
materials and auxiliary materials at home.
Previously the Government stressed that foreign investment
entering Indonesia must not be the type of industry which increased import of
raw materials and auxiliary materials because such would widen deficit in
trading account and current account. The Government should be wiser in
selecting foreign investors.
Almost certainly the Government would tolerate import of
capital goods because it would enhance productivity to domestic industry. To
anticipate increase of import, the Government had exercised tight screening on
coming investors. Those who were already operating were obliged to start
downstreaming, especially in the mineral and mining industry. Foreign investors
must meet two requirements, i.e. to minimize import of raw materials and
auxiliary materials in line with national industrial downstreaming plan.
In line with Government’s plan to minimize deficit in
current transaction [DTP], import of non oil-gas products which tend to be
unproductive or consumptive must be stopped by way of increasing import tax.
However import of raw materials and auxiliary materials which were vital to
national industry would be exempted from the rule; this was related to
employment opportunities procurement.
Direct employment in quarter IV/2013 numbered 430,107
people, where absorption by PMA was 270,792 people of which the highest
absorption was by PMA 270,792 people or 62.9% or total workforce while PMDN
absorption was 159.315 people. To accumulate the number employment from quarter
I to IV last year, the total number of workers absorbed was 1.8 million people.
By quarterly, employment absorption was fluctuating. The breakdown: by quarter
I the number of workers employed numbered 361,924 people, in quarter II 626,376
people, in quarter III 411,543 people and in quarter IV 430,107 people.
One of the causes was that development differed from one
quarter to another, for instance: factory construction began in quarter I,
employment absorption happened in quarter II. The important thing was that
unemployment could be reduced. (SS)
Business News - February 5, 2014
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