INVESTMENT JUMPS IN Q2

Jakarta, July 28 (ANTARA) - The Investment Coordinating Board (BKPM) in the second quarter of 2010 approved investment proposals worth Rp50.8 trillion compared to Rp42.1 trillion in the same period last year.

"The realization of investment suggests that our steps to achieve the 2010 investment target were fruitful," BKPM Chief Gita Wirjawan said here on Wednesday.

The investment proposals approved in the second quarter of 2010 consisted of foreign investment worth Rp35.6 trillion and domestic investment worth Rp15.2 trillion, he said.

The second-quarter investment approvals brought investment in the first half of 2010 to Rp92.9 trillion, up 39.9 percent from Rp66.4 trillion in the same period last year, he said.

"Compared to the investment target of Rp160 trillion for 2010, the first-semester investment reached 58.1 percent," he said.

In the second quarter of 2010, the food industry took the lead in attracting domestic investment with Rp6.2 trillion in 108 projects, he said.

This was followed by the food crops and plantation sector with Rp1.8 trillion in 42 projects, the transportation, warehousing and telecommunication sector Rp1.7 trillion in 26 projects, and the mining sector Rp1.6 trillion in 5 projects.

Domestic investment in other sectors reached Rp4 trillion in 199 projects, he said.

Meanwhile, a great chunk of foreign investment went to the warehousing and telecommunication sector with US$1.5 billion in 48 projects, followed by the mining sector US$0.6 billion in 99 projects, the trade and reparation sector US$0.4 billion in 327 projects.

The electricity sector attracted foreign investment worth US$0.3 billion with 10 projects, while foreign investment in other sectors reached US$0.9 billion with 663 projects.

He said East Java was the biggest destination of domestic investment with Rp5.1 trillion in 32 projects, followed by East Kalimantan Rp3.7 trillion in 13 projects, West Java Rp1.5 trillion in 34 projects, Riau Rp800 billion in 38 projects, and Rp4.1 trillion went to other provinces with 263 projects.

In terms of foreign investment, Jakarta took the lead with US$1.9 billion in 370 projects, followed by East Java US$0.5 billion in 29 projects, Papua US$0.2 billion in 8 projects, and Bali US$0.2 billion in 69 projects.
Singapore ranked first as a source country of foreign investment in the second quarter of 2010 with US$1.6 billion in 156 projects, with Hong Kong trailing behind with US$0.8 billion in 27 projects, the United States US$0.3 billion in 33 projects, Japan US$0.2 billion in 98 projects, and The Netherlands US$0.2 billion in 43 projects.***2***
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