ProdukHukum BankIndonesia
PRESS RELEASE
CHAIRMAN OF THE INDONESIAN INVESTMENT COORDINATING BOARD (BKPM)
Foreign and Domestic Investment Realization
April - June (Q2) Results, 2010
Jakarta, July 28, 2010 – The Coordinating Board for Investment (BKPM) of the Republic of
Indonesia today announces its second quarter investment realization figures for both domestic
(“PMDN”) and foreign direct investment (“PMA”). The figures reported today are based on
Investment Activity Reports (LKPM) reported by companies to BKPM.
This is the second quarter that BKPM is releasing investment realization figures using the LKPM
methodology, as opposed to the Permanent Business License (“IUT”) method. The previous
IUT methodology recorded investment plans once a company had obtained a Permanent
Business License or Operating License, which may capture investment realization that occurred
in the past 2-3 years, and therefore does not reflect the periodic flow of investments in real
time.
The release of the new methodology for investment realization for both domestic and foreign
capital was undertaken by BKPM to better reflect investment realization flows per period,
recording investment as and when they occur, as opposed to cumulatively. With the new
method, the reporting period for investment companies whose projects are still under
development will now need to submit Investment Activity Reports every quarter, instead of
every six months as previously required. For those investment companies who have obtained a
Permanent Business License (IUT), they must now submit an Investment Activity Report every
six months, instead of once a year as previously required.
Investment Realization for the second quarter of 2010:
Domestic and foreign investment realization in Q2 of 2010 totaled Rp. 50.8 trillion, with total
investment in the development phase amounting to Rp. 46.4, while investment realization for
companies who have already obtained a Permanent Business License have capital expenditures
totaling Rp. 4.4 trillion.
From a total investment realization of Rp. 50.4 trillion, total domestic investment realization
was Rp. 17.1 trillion, while total foreign investment realization was Rp. 33.3 trillion. This
represents a quarter-on-quarter growth of 19.7%, while year-on-year growth from the second
quarter of 2009 stands at 54.6%.
The following is an illustration of investment realization growth in the second quarter of 2010:
Investment realization growth:
QI/2010:
-
q-o-q:
y-o-y:
81,5%
24,6%
Q II/2010
-
q-o-q:
y-o-y:
20,7%
55,8%
The cumulative investment realization for the first half (six months) of 2010 is Rp. 92.9 trillion.
If we compare this to the investment realization for the first six months of 2009, which totaled
Rp. 66.4 trillion, investment grew by 39.9%. BKPM’s total investment target for 2010 is Rp. 160
trillion, the current realization figure has reached 58.1% of this year’s target.
“These are indeed very promising figures, given that we have made good headway towards
achieving our 2010 target. Indonesia’s positive internal and external environment has also
been supporting this momentum. Provided that we continue to work hard to improve the
investment climate and tackle structural issues, there is no reason why we cannot reach this
target,” says Mr. Gita Wirjawan, the Chairman of Indonesia’s Investment Coordinating Board.
Investment realization breakdown
1. BKPM reports investment realization figures submitted by both domestic and foreign
companies through the Investment Progress Report (LKPM). These LKPM reports
include activity and investment realization of companies whose projects are still under
the development phase, as well as investment realization arising from capital
expenditures after the business has obtained a permanent business license.
2. Notable realized investments by business sector for Domestic Investors are Food
Industry; 40% (Rp. 6,2 trillion; 108 projects), Food Crops & Plantation; 12% (Rp. 1,8
trillion; 42 projects), Transportation, Storage and Telecommunications; 11% (Rp. 1,7
trillion; 26 projects), Mining; 10% (Rp. 1,6 trillion; 5 projects) and Others; 26% (Rp. 4,0
trillion; 199 projects)
3. Notable realized investments by business sector for Foreign Investors are
Transportation, Storage and Telecommunications; 40% (US$. 1,5 billion; 48 projects),
Mining; 17% (US$. 0,6 billion; 99 projects), Trade and Repairs; 11% (US$. 0,4 billion; 327
projects), Electricity, Gas and Water Supply; 7% (US$. 0,3 billion; 10 projects) and Others; 25%
(US$. 0,9 billion; 663 projects).
Domestic Investment by Sector
Q2/2010
Foreign Investment by Sector
Q2/2010
4. Notable realized investments by project location for Domestic Investors are in the East
Java; 33% (Rp. 5,1 trillion; 32 projects), East Kalimantan; 24% (Rp. 3,7 trillion; 13 projects), West
Java; 10% (Rp. 1,5 trillion; 34 projects), Riau;6% (Rp. 0,8 trillion; 38 projects) and Others; 27%
(Rp. 4,1 trillion; 263 projects).
5. Notable realized investments by project location for Foreign Investors are in Jakarta;
50% (US$. 1,9 billion; 370 projects), East Java; 13% (US$. 0,5 billion; 29 projects), Papua; 5%
(US$. 0,2 billion; 8 projects), Bali; 5% (US$. 0,2 billion; 69 projects) and Others; 27% (US$. 1,0
billion; 673 projects).
Domestic Investment by Location
Q2/2010
Foreign Investment by Location
Q2/2010
6. Notable realized investments by country of origin are Singapore totaling US$ 1.6 billion;
156 projects; Hongkong; US$ 0.8 billion; 27 projects; United States of America valued at
US$ 0.3 billion; 33 projects; Japan valued at US$ 0.2 billion; 98 projects; and the
Netherlands valued at US$ 0.2 billion; 43 projects and others; US$0.8 billion, 792
projects.
7. Labor force absorption arising from total realized investments reached 211,040 persons,
92,331 persons of which resulted from domestic investments, and 118,709 of which
resulted from foreign investments.
Comparison of Investment Realization between BKPM, Bank Indonesia and Indonesian
Statistical Bureau (BPS)
It is important to note that the investment realization figures (domestic and foreign) which are
reported by BKPM differs from the Foreign Direct Investment figures reported by Bank
Indonesia (BI) in its Balance of Payments method (“BOP”), as well as the data reported by the
Statistical Bureau in its Gross Fixed Capital Formation figure.
The investment realization reported by BKPM records realized domestic investment (PMDN)
and realized foreign investment (PMA) from companies that register for business licenses to
BKPM and only records investment activity and realization outside of the following sectors: Oil
and Gas, Banking, Financial Institutions, non-bank Financial Institutions, Insurance, Leasing,
Portfolio Investments, Capital Markets Investments, Investments whose licensing are issued by
technical Ministries, as well as Household Investments.
The Foreign Direct Investment Figure that is reported by BKPM differs from those reported by
BI in that, BI uses the Balance of Payments method which records the net inflow and outflow
of foreign capital fund flows that enters into Indonesia from abroad. FDI as recorded by BI,
captures direct investments from Indonesian nationals living abroad, as well as FDI within
Indonesia. Unlike the BKPM method, the BI method also captures investments in all sectors.
In the Indonesian Bureau of Statistics (BPS) method, the Gross Fixed Capital Formation (GFCF)
formula is used, which is one of the components of the Gross Domestic Product. The domestic
and foreign investment recorded by BKPM is only a small part of this GFCF. For more detailed
information on these comparisons, please see the attached matrix.
Jakarta, 28 Juli 2010
Badan Koordinasi Penanaman Modal
INVESTMENT DATA OF BANK INDONESIA, BKPM AND STATISTICAL BUREAU (BPS)
INDONESIA INVESTMENT COORDINATING BOARD
1. Only records investment activity and realization that is
reported by companies to BKPM outside the following
sectors
- Oil and Gas
- Banking and financial institutions
- Investments whose licensing is issues by technical
departments
- Household investments
2. Categorized as foreign investment if even a single
share is held by a foreign investor, mandated by the
investment law.
3. Does not include investments in the capital markets,
only in the real sector
4. That which is reported by the company, PMA data
could include both foreign and domestic capital.
INDONESIA STATISTICAL BUREAU (BPS)
BANK INDONESIA
1. Data includes investments made by Indonesian
nationals living abroad, as well as foreign direct
investment within Indonesian borders. Moreover, the
FDI figure includes investments in all sectors, unlike that
of BKPM’s.
2. Categorized as foreign investment if the investment has
a minimum of 10% foreign ownership.
3. Includes both capital market as well as real sector
investments.
4. Only reports the foreign ownership contribution, not
the domestic capital portion of the investment
1. The Statistical Bureau’s investment figure is the Gross Fixed Capital Formation (GFCF), one of the components of
the Gross Domestic Product (GDP).
GDP = Domestic Consumption + Government Spending + Investment + (exports – imports)
Investment= Gross Fixed Capital Formation + Changes in Inventory
GFCF = Household Fixed Capital + Capital Expenditure + Private Capital (inside and outside country)*
*includes small medium enterprise, large scale upstream oil & gas , large scale projects that are
registered at BKPM, including large scale mining)
1
CHAIRMAN OF THE INDONESIAN INVESTMENT COORDINATING BOARD (BKPM)
Foreign and Domestic Investment Realization
April - June (Q2) Results, 2010
Jakarta, July 28, 2010 – The Coordinating Board for Investment (BKPM) of the Republic of
Indonesia today announces its second quarter investment realization figures for both domestic
(“PMDN”) and foreign direct investment (“PMA”). The figures reported today are based on
Investment Activity Reports (LKPM) reported by companies to BKPM.
This is the second quarter that BKPM is releasing investment realization figures using the LKPM
methodology, as opposed to the Permanent Business License (“IUT”) method. The previous
IUT methodology recorded investment plans once a company had obtained a Permanent
Business License or Operating License, which may capture investment realization that occurred
in the past 2-3 years, and therefore does not reflect the periodic flow of investments in real
time.
The release of the new methodology for investment realization for both domestic and foreign
capital was undertaken by BKPM to better reflect investment realization flows per period,
recording investment as and when they occur, as opposed to cumulatively. With the new
method, the reporting period for investment companies whose projects are still under
development will now need to submit Investment Activity Reports every quarter, instead of
every six months as previously required. For those investment companies who have obtained a
Permanent Business License (IUT), they must now submit an Investment Activity Report every
six months, instead of once a year as previously required.
Investment Realization for the second quarter of 2010:
Domestic and foreign investment realization in Q2 of 2010 totaled Rp. 50.8 trillion, with total
investment in the development phase amounting to Rp. 46.4, while investment realization for
companies who have already obtained a Permanent Business License have capital expenditures
totaling Rp. 4.4 trillion.
From a total investment realization of Rp. 50.4 trillion, total domestic investment realization
was Rp. 17.1 trillion, while total foreign investment realization was Rp. 33.3 trillion. This
represents a quarter-on-quarter growth of 19.7%, while year-on-year growth from the second
quarter of 2009 stands at 54.6%.
The following is an illustration of investment realization growth in the second quarter of 2010:
Investment realization growth:
QI/2010:
-
q-o-q:
y-o-y:
81,5%
24,6%
Q II/2010
-
q-o-q:
y-o-y:
20,7%
55,8%
The cumulative investment realization for the first half (six months) of 2010 is Rp. 92.9 trillion.
If we compare this to the investment realization for the first six months of 2009, which totaled
Rp. 66.4 trillion, investment grew by 39.9%. BKPM’s total investment target for 2010 is Rp. 160
trillion, the current realization figure has reached 58.1% of this year’s target.
“These are indeed very promising figures, given that we have made good headway towards
achieving our 2010 target. Indonesia’s positive internal and external environment has also
been supporting this momentum. Provided that we continue to work hard to improve the
investment climate and tackle structural issues, there is no reason why we cannot reach this
target,” says Mr. Gita Wirjawan, the Chairman of Indonesia’s Investment Coordinating Board.
Investment realization breakdown
1. BKPM reports investment realization figures submitted by both domestic and foreign
companies through the Investment Progress Report (LKPM). These LKPM reports
include activity and investment realization of companies whose projects are still under
the development phase, as well as investment realization arising from capital
expenditures after the business has obtained a permanent business license.
2. Notable realized investments by business sector for Domestic Investors are Food
Industry; 40% (Rp. 6,2 trillion; 108 projects), Food Crops & Plantation; 12% (Rp. 1,8
trillion; 42 projects), Transportation, Storage and Telecommunications; 11% (Rp. 1,7
trillion; 26 projects), Mining; 10% (Rp. 1,6 trillion; 5 projects) and Others; 26% (Rp. 4,0
trillion; 199 projects)
3. Notable realized investments by business sector for Foreign Investors are
Transportation, Storage and Telecommunications; 40% (US$. 1,5 billion; 48 projects),
Mining; 17% (US$. 0,6 billion; 99 projects), Trade and Repairs; 11% (US$. 0,4 billion; 327
projects), Electricity, Gas and Water Supply; 7% (US$. 0,3 billion; 10 projects) and Others; 25%
(US$. 0,9 billion; 663 projects).
Domestic Investment by Sector
Q2/2010
Foreign Investment by Sector
Q2/2010
4. Notable realized investments by project location for Domestic Investors are in the East
Java; 33% (Rp. 5,1 trillion; 32 projects), East Kalimantan; 24% (Rp. 3,7 trillion; 13 projects), West
Java; 10% (Rp. 1,5 trillion; 34 projects), Riau;6% (Rp. 0,8 trillion; 38 projects) and Others; 27%
(Rp. 4,1 trillion; 263 projects).
5. Notable realized investments by project location for Foreign Investors are in Jakarta;
50% (US$. 1,9 billion; 370 projects), East Java; 13% (US$. 0,5 billion; 29 projects), Papua; 5%
(US$. 0,2 billion; 8 projects), Bali; 5% (US$. 0,2 billion; 69 projects) and Others; 27% (US$. 1,0
billion; 673 projects).
Domestic Investment by Location
Q2/2010
Foreign Investment by Location
Q2/2010
6. Notable realized investments by country of origin are Singapore totaling US$ 1.6 billion;
156 projects; Hongkong; US$ 0.8 billion; 27 projects; United States of America valued at
US$ 0.3 billion; 33 projects; Japan valued at US$ 0.2 billion; 98 projects; and the
Netherlands valued at US$ 0.2 billion; 43 projects and others; US$0.8 billion, 792
projects.
7. Labor force absorption arising from total realized investments reached 211,040 persons,
92,331 persons of which resulted from domestic investments, and 118,709 of which
resulted from foreign investments.
Comparison of Investment Realization between BKPM, Bank Indonesia and Indonesian
Statistical Bureau (BPS)
It is important to note that the investment realization figures (domestic and foreign) which are
reported by BKPM differs from the Foreign Direct Investment figures reported by Bank
Indonesia (BI) in its Balance of Payments method (“BOP”), as well as the data reported by the
Statistical Bureau in its Gross Fixed Capital Formation figure.
The investment realization reported by BKPM records realized domestic investment (PMDN)
and realized foreign investment (PMA) from companies that register for business licenses to
BKPM and only records investment activity and realization outside of the following sectors: Oil
and Gas, Banking, Financial Institutions, non-bank Financial Institutions, Insurance, Leasing,
Portfolio Investments, Capital Markets Investments, Investments whose licensing are issued by
technical Ministries, as well as Household Investments.
The Foreign Direct Investment Figure that is reported by BKPM differs from those reported by
BI in that, BI uses the Balance of Payments method which records the net inflow and outflow
of foreign capital fund flows that enters into Indonesia from abroad. FDI as recorded by BI,
captures direct investments from Indonesian nationals living abroad, as well as FDI within
Indonesia. Unlike the BKPM method, the BI method also captures investments in all sectors.
In the Indonesian Bureau of Statistics (BPS) method, the Gross Fixed Capital Formation (GFCF)
formula is used, which is one of the components of the Gross Domestic Product. The domestic
and foreign investment recorded by BKPM is only a small part of this GFCF. For more detailed
information on these comparisons, please see the attached matrix.
Jakarta, 28 Juli 2010
Badan Koordinasi Penanaman Modal
INVESTMENT DATA OF BANK INDONESIA, BKPM AND STATISTICAL BUREAU (BPS)
INDONESIA INVESTMENT COORDINATING BOARD
1. Only records investment activity and realization that is
reported by companies to BKPM outside the following
sectors
- Oil and Gas
- Banking and financial institutions
- Investments whose licensing is issues by technical
departments
- Household investments
2. Categorized as foreign investment if even a single
share is held by a foreign investor, mandated by the
investment law.
3. Does not include investments in the capital markets,
only in the real sector
4. That which is reported by the company, PMA data
could include both foreign and domestic capital.
INDONESIA STATISTICAL BUREAU (BPS)
BANK INDONESIA
1. Data includes investments made by Indonesian
nationals living abroad, as well as foreign direct
investment within Indonesian borders. Moreover, the
FDI figure includes investments in all sectors, unlike that
of BKPM’s.
2. Categorized as foreign investment if the investment has
a minimum of 10% foreign ownership.
3. Includes both capital market as well as real sector
investments.
4. Only reports the foreign ownership contribution, not
the domestic capital portion of the investment
1. The Statistical Bureau’s investment figure is the Gross Fixed Capital Formation (GFCF), one of the components of
the Gross Domestic Product (GDP).
GDP = Domestic Consumption + Government Spending + Investment + (exports – imports)
Investment= Gross Fixed Capital Formation + Changes in Inventory
GFCF = Household Fixed Capital + Capital Expenditure + Private Capital (inside and outside country)*
*includes small medium enterprise, large scale upstream oil & gas , large scale projects that are
registered at BKPM, including large scale mining)
1