Foreign investment inflows fell 33% in 2006.
According to the Foreign Investment Coordinating Board (BKPM) realised foreign investment (FDI) inflow for January-December 2006 fell to 5.9 billion dollars, a fall of 32.9% from the figure of 8.9 billion dollars in 2005. The number of approved foreign investment projects also fell, from 900 to 867.
Realised domestic investment levels saw a similar decline, falling 32.2% in 2006. The 2005 figure of 30.6 trillion rupiah fell to 20.8. The number of projects embarked upon also fell by 24%, from 214 projects in 2005 to 164 in 2006. antara
However numbers of people employed in foreign funded investment projects rose from 156,109 in 2005 to 206,945 men and women in 2006. Those employed by locally funded projects fell in number from 122,750 in 2005 to only 79,415 in 2006.
Coordinating minister for the economy, Boediono, doubted whether investment levels had actually fallen in 2006. He said that BKPM statistics were not to be relied on given that they only included investments that went through BKPM channels. He said there was much investment that was not recorded by the BKPM. detik