Triyan Pangastuti, Jakarta – Foreign direct investment in Indonesia jumped 18 percent in the third quarter from the same period last year, marking a return of confidence as concerns over political uncertainty and policy discontinuity subsided following the re-election of President Joko "Jokowi" Widodo.
The Investment Coordinating Board (BKPM) said on Thursday that foreign direct investment had risen to Rp 105 trillion ($7.5 billion) between July and September this year.
Domestic investment meanwhile increased by 19 percent to Rp 101 trillion in the same period. Total investment rose to Rp 206 trillion in the third quarter, from Rp 174 trillion in the same period last year. Investment growth slowed in the previous two quarters.
"The April 2019 legislative and presidential elections, which proceeded peacefully, sent a positive signal and it has had an impact since the second quarter. This indicates that investment activities are picking up once more," BKPM chairman Bahlil Lahadalia said.
Total investment realization in the first nine months of this year reached Rp 601 trillion, up 12 percent compared with the same period last year. Domestic investment amounted to Rp 283 trillion, while foreign direct investment stood at Rp 318 trillion.
Bahlil said he believed the country could meet its Rp 729 trillion investment target, noting that 76 percent of the target had already been achieved.
"Investment achievements are still in line with our year-end target... There is still Rp 192 trillion to be realized over the next three months. We are optimistic that this will be achieved, even though the global economy has not been encouraging," Bahlil said.
Investment realization had also begun to shift outside Java, rising to Rp 94 trillion in the third quarter, which is 24 percent higher than last year. In comparison, investment increased by 14 percent in Java, Indonesia's most populous island, which saw a Rp 112 trillion injection in various projects.
"The interesting thing is that the pace of investment was higher outside Java. The government is determined to continue to accelerate the increase in investment and other economic activities outside Java," Bahlil said.