Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 September 14, 2015 - 10:01 AM EDT
Print Email Article Font Down Font Up
Investments in Indonesia from Middle East Up: BKPM

JAKARTA, Sept 14, 2015 - (ACN Newswire) - Indonesia's Investment Coordinating Board, BKPM, is seeing a growing trend in investment from Middle Eastern countries, especially from the United Arab Emirates (UAE).

Although, in terms of value, it is still small when compared with investment coming from Japan and South Korea, the trend reflects an upswing, BKPM Chief, Franky Sibarani said in a written statement on Monday.

He added that he is optimistic that following the latest visit of President Joko Widodo to Saudi Arabia, the UAE and Qatar, investment will go up from these countries.

"It can be admitted that the value of investments from Middle-Eastern countries to Indonesia is still relatively small, especially when compared to those from East Asian countries, such as Japan and South Korea. President Jokowi's visit to the region is expected to attract investors' interest to Indonesia," he said.

Sibarani said that although the value was still small, there had been an increase in the realization of investment and investment principle permit applications from the UAE, compared with the year before.

According to BKPM's data realization for UAE investment in Indonesia during the first semester of 2015 was recorded at US$13.61 million, up several times from a year ago at US$1.57 million.

The value of UAE's investment realization from 2010 to the first semester of 2015 touched US$107.4 million outside the financial and oil and gas downstream sectors.

With regards to the investment principle permit applications from the UAE during the period of January to August 2015, they were valued at US$199.80 million, up 216 percent from US$64.9 million in the same period a year ago.

BKPM recorded the realization of investment from the Middle East in Indonesia from 2010 to the first semester of 2015, which reached US$440 million outside the financial and oil and gas downstream sectors.

The investment covered 235 projects and absorbed more than 6,000 workers.

Investment realization from the Middle East countries in Indonesia during the past five years grew at an average of 49 percent a year.

"The value of investment realization is still far from the cooperation potential between Indonesia and the Middle Eastern countries. The foreign investment value from the Middle East between 2010 and the first semester of 2015 touched US$180 billion and so the investment potential from the Middle East is still big," he said.

Sibarani said he would maximize the function of the representative office in Abu Dhabi to market Indonesia's investment potential in the region.

"The Middle East countries' main investment destinations are actually in line with our priorities, such as the property sector (development of special economic and industrial zones), oil and gas and mineral processing industries, tourism zone development and renewable energy sources (geothermal, water, solar and bio-mass)," he said. --Antara.

Copyright 2015 ACN Newswire . All rights reserved.

Source: ACN Newswire (September 14, 2015 - 10:01 AM EDT)

News by QuoteMedia