INDUSTRIAL SECTOR LEADS THE FIRST QUARTER OF INVESTMENT IN INDONESIA

Upon the release of economy evaluation in term of investment,of the first quarter, industrial sector leads the majority of investment which contributes around 85.5 trillion from total investment in entire sectors. It is almost 58.6% from the total investment for the first quarter of 2016. This means half of total investment falls to industrial sector which shows great opportunity for the investors. 

On wednesday, may 4th, 2016 head of the Investment Coordinating Board (BKPM) Franky Sibarani point out that some sectors of industry that are in the top list are labor intensive sectors. "One is the food industry that accounts for realization of investment of Rp 15.4 trillion, equivalent to 10.5% to the industrial investment. 

Another 5 sectors that are in top list of industrial other than food industry is  the paper industry paper products and printing with an investment of Rp 27.5 trillion, equivalent to 18.7%, basic chemical industry, chemical and pharmaceutical goods amounting to Rp 19 trillion (13 %), transport equipment and other transportation Rp 12.2 trillion (8.3%) and basic metal industries, metal and electronic goods amounting to Rp 11.8 trillion (8.1%)

What shows as an incredible hint then is the majority of investment from top 5 list industrial sector coming from foreign investment which is recorded to reach 4.8 billion dollar or equivalent to 11.8 trillion rupiahs or 8.1% from total industrial sector investment. On the contrary domestic investors has to push through to increase the scope of investment of which only contributing 21% from total investment of five industrial sector or 18.6 trillion rupiahs. 

The realization of these investments breaks the  records investment realization in country, consisting of domestic investment  amounting to Rp 50.4 trillion, up 18.6% from Rp 42.5 trillion in the same period in  previous year 2015, and investment foreign  amounting to Rp 96.1 trillion, up 17.1% from Rp 82.1 trillion in the same period in 2015.

Responding to this significant statistic, government seeks to support the realm of investment for better circumstance.  the government is also in  efforts to encourage the industrial sector mainly included in the priority sectors such as labor-intensive industries, export-oriented industries, import substitution industry and mineral downstream industries will continue to be pursued.