ASEAN KEY DESTINATIONS
Investment targeted to grow by 15 percent in 2014
The Investment Coordinating Board (BKPM) is targeting 15 percent or around Rp 450 trillion (US$36.9 billion) growth in realized investments from both foreign and domestic investors in 2014.
“This figure [15 percent] is neutral. It’s not too optimistic but not too pessimistic because growth will not be too extraordinary like in previous years. From opportunities we’ve had, it seems that growth will be bigger than that,” BKPM chairman Mahendra Siregar said on Tuesday, as quoted by Antara news agency.
Mahendra said he was optimistic that the target would be achieved due to several investment-friendly regulations issued by the government, such as Government Regulation No.1/2014, Energy and Mineral Resources Minister Regulation No.1/2014 and Finance Minister Regulation No.6/2014 on domestic mineral industry downstreaming. Presidential Regulation No.36/2010 on the revised negative investment list will also be issued soon.
“On mineral downstreaming, we have issued permits to several companies with investment values of less than Rp 150 trillion. This target will not be realized at once in 2014, but will be achieved over the next several years,” said Mahendra.
He said 28 companies had obtained production permits, three of which had begun construction activities and would start production this year.
The BKPM has also issued a license for investment related to the government program on the palm oil industry to reduce
Indonesia’s dependency on imported oil and to boost domestic energy resiliency.
“Several companies have invested nearly Rp 40 trillion. They will supply biofuel from palm oil to state utility company PT PLN to achieve its target to substitute 1.7 million kiloliters of diesel fuel this year,” he said. (ebf)
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below