REPUBLIKA.CO.ID, JAKARTA -- The weakening of the rupiah against the dollar in recent weeks has yet to affect the inflow of foreign investment to Indonesia, Head of the Investment Coordinating Board (BKPM) Franky Sibarani said.
"The number of investment proposals received in the January-February 2015 period by the BKPM was higher than that in the same period last year," he revealed in a press statement released on Saturday (14/3).
Data from the BKPM suggests that during the first two months of 2015, the agency received domestic investment proposals worth Rp59 trillion in 1,138 projects as compared to that of Rp40.14 trillion in 689 projects in the same period the previous year.
During the January-February 2015 period, the agency also received foreign investment proposals worth US$16.1 billion in 596 projects as compared to that of US$6.3 billion in 698 projects in the same period of 2014.
"Investors have applied for permits to the BKPM and have been identified. Like I said, the rupiah's depreciation has not affected investment inflows yet. We hope investment plans are realized soon so they can boost economic growth," Sibarani remarked.
The BKPM chief further noted that China led the foreign investment plans in the January-February 2015 period with US$6.77 billion, a jump from investment plans worth US$557.22 million in the same period last year.
Malaysia ranked second with US$2.23 billion as investment plans as compared to that of US$252.59 million last year, and Japan occupied the third spot with US$1.03 billion as compared to its US$319.68 million in the same period of 2014.
"The surge in Chinese investment proposals came as no surprise as the country was part of the top five foreign investors in Indonesia for the first time in the fourth quarter of 2014, with investment worth US$500 million. The same holds true for Malaysia, which ranked among the top five foreign investors in 2014, with investment worth US$1.8 billion, for the first time," he stated.
Sibarani added that a number of investors also cancelled investment plans in Indonesia.
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