Transportations, Warehousing, and Communications Sectors are The Most Attractive to Foreign Investors

The Investment Coordinating Board [BKPM] reported that realization of foreign [PMA] and domestic [PMDN] investments in the past four years [2005-2008] was in fluctuative trend. Realization of domestic investments in 2005 reached Rp. 30.72 trillions, decreased to Rp. 20.65 trillions in 2006. In 2007, the value increased to Rp. 38.88 trillions, but it decreased to Rp. 20.36 trillions in 2008.
And, foreign investment realization was also fluctuative where in 2005 it reached USD 8.91 billions, decreased to USD 5.99 billions in 2006. In 2007, foreign investment realization rose to USD 10.31 billions and it continued to increase to USD 14.87 billions. Latest report released by the Investment Coordinating Board stated that foreign investment realization in January-April 2009 reached USD 1.4 billions and domestic investment realization Rp. 1.51 trillions.

The BKPM reported that transportations, warehousing, and communications sectors were the most attractive to foreign investors with total investment realization at USD 8.53 billions, followed by metal, machineries, and electronics at USD 1.28 billions; motor vehicles and other transportations at USD 0.76 billions; chemicals and pharmaceuticals at USD 0.63 billions; and trade, repairs, and others at USD 0.58 billions.
While, domestic investors were mostly interestedly in food industry with a total investment realization at Rp. 8.19 trillions, followed by metal, machineries, and electronics at Rp. 2.38 trillions; paper and printing industries at Rp. 1.80 trillions; food plants and plantations at Rp. 1.18 trillions; and constructions at Rp. 881 billions.
For 2009, the Investment Coordinating Board sets target of investment realization to increase 10%-11% from that in 2008. This target was quite realistic considering sluggishness of global economy that it affects investment performance. Besides such external factor, investment performance is also affected by internal factor where year 2009 was assumed as a political year because in this year general election is held so investors take a careful attitude while observing the political development in Indonesia.