Foreign & Domestic Investment

Oct 19th, 2006, in Business & Economy, by

Notional foreign direct investment in the country is largely steady while in real terms FDI values have fallen significantly year to date. The domestic investment picture is modestly brighter.

January to September 2006 has seen the value of approved (notional) FDI decline marginally to $10.52 billion compared to $10.66 billion in the same period last year, says Antara. The National Investment Coordinating Board (BKPM) is reported to say that the decline can be attributed to a drop in value of both new projects, as well as expansions on existing ones.

1,068 new projects worth $3.33 billion were approved in the period in question as compared to 1,096 projects, worth $4.03 billion the year earlier. Additionally 315 expansion projects worth $3.05 billion were given the go-ahead as against 293, at $4.97 billion in value, last year.

However actual, or realised, FDI for the year to date fell sharply to $4.29 billion, from 702 projects, down from $7.64 billion, from 706 projects, a year ago.

Meanwhile on the domestic investment front a 182% increase in value was witnessed in the first nine months of the year, in notional terms. 107.93 trillion rupiah was recorded as being approved for investment by local concerns, up from 38.26 trillion in the corresponding period of last year. New projects approvals were the driving force behind the increase. 139 new domestic investment projects were approved by the government, at 83.98 trillion rupiah in value, during the first nine months as against 144 projects worth 26.72 trillion previously.

However in real terms actual domestic investment was at 12.43 trillion rupiah, from 117 projects, up modestly from 11.97 trillion, from 163 projects, the previous year. These realized projects put 49,322 people into work, down sharply from 78,710 in the first nine months of 2005.

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