CENTRAL JAVA INVESTMENT: 1st Quarter / 2017, Foreign Capital Increases Drastically

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Foreign investment dominated the realization of investment in Central Java in the first quarter of 2017 with a drastic growth of 133.5% to Rp6.9 trillion.

Prasetyo Aribowo, Head of Investment and Integrated Service Agency (DPMPTSP) of Central Java, said the realization of foreign direct investment (FDI) in the same period last year was recorded at only Rp2.96 trillion.

"The realization of PMA of Rp. 6, 9 trillion was derived from 168 projects and managed to absorb 21,991 workers," he said on Friday (28/04/2017).

Based on the country, according to Prasetyo, the five largest contributor of FDI consists of Japan with total investment of US $ 344.9 million, South Korea US $ 112.9 million, Singapore US $ 14.01 million, US $ 13.16 million and China US $ 8, 6 million.

He explained that the realization of investment from Japan is one of the biggest contributors because there are two steam power plants (PLTU) projects being built in Central Java, power plants in Tanjung Jati Jepara and Batang.

"Well, if the characteristics of investors from South Korea are more to the textile industry and textile products and footwear," he said. In his opinion, foreign investment jumped drastically due to several efforts that have been done by the government, both central and local government.

He pointed out that last year the central government released a deregulation incentive policy in a package of policies to support investment in the country. "The deregulation incentives just feel the impact now," he said.

In addition, the other factor is One Stop Integrated Service (PTSP) which is considered better so as to generate trust from investors.

"Furthermore, Central Java's advantage is that wages are still competitive compared to other provinces, which is one of the factors investors invest in Central Java," he said.

EXCEEDED THE TARGET

Overall, total investment in Central Java exceeded the target in the first quarter of 2017. The target of investment achievement from January to March 2017 was Rp. 10.1 trillion, but realized Rp. 11.88 trillion, an increase of 30.68% from the same period last year of Rp. 8.23 trillion.

Prasetyo asserted that the investment realization of the first three months of this year gives hope to reach the realization target of Rp. 41.7 trillion in 2017.

"The first quarter revenue is 28 percent of the total investment target of 2017. This is a good beginning so that the target of Rp41, 7 trillion can be achieved and hopefully exceeded," he said.

Source : http://semarang.bisnis.com/read/20170502/12/93782/investasi-jateng-kuartal-i2017-modal-asing-meningkat-drastis-