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BKPM eyes investments worth Rp 237t outside Java

The Investment Coordinating Board (BKPM) is targeting Rp 237 trillion (US$18.33 billion) worth of investments outside of Java throughout 2015 in order to achieve a more balanced distribution of economic activities in the areas, an official says.

“We are focused on promoting larger investments in regions outside of Java,” BKPM chairman Franky Sibarani said as quoted by Antara news agency in Jakarta on Monday.

According to BKPM data, Rp 75.2 trillion out of Rp 237 trillion is targeted for investment projects in Sumatra, followed by Kalimantan (Rp 74.5 trillion), Papua and West Papua (Rp 33.2 trillion), Sulawesi (Rp 27.8 trillion), Bali and Nusa Tenggara (Rp 19 trillion) and Maluku (Rp 7.3 trillion).

“We hope there will be investments outside of Java that bring added value to products in various sectors, such as […] in industries in the agriculture [plantation and animal husbandry], fishery and mining sectors,” said Franky.

He said that specifically for Papua and West Papua, the government was setting larger investment targets to achieve a more equal distribution of economic opportunities in the regions.

“Rp 33.2 trillion worth of investments is targeted for the two provinces, particularly investment developments in the agriculture, fishery and mining sectors and their processing industries, as well as in the chemical industry,” said Franky.

Meanwhile, the amount of investment targeted for Java is Rp 282.6 trillion this year.

Franky admitted that Java still enjoyed a larger portion of investment compared to regions outside the island. However, he said, the government would focus investment projects more on trade, services and labor-intensive industries instead of the natural resources processing industry.

The investment target in 2015 is set at Rp 519.5 trillion, comprising Rp 88.4 trillion in the primary sector, Rp 267.5 trillion in the secondary sector and Rp 163.6 trillion in the tertiary sector.

Franky claimed that the target was achievable and would support the government in achieving its economic growth target of 5.8 percent in 2015.

Until 2019, the government was targeting a realized investment of Rp 3.5 quadrillion, or double the realized investment of Rp 1.63 quadrillion from 2010 to 2014.

Source : www.thejakartapost.com, Monday 23 February 2015