Posted on 28 Dec 2007
Domestic investment in the non-oil/non-gas industrial sector this year grew by around 88 percent to Rp24.8 trillion from Rp13.2 trillion a year earlier, an Industry Ministry official said.
"Investment in the industrial sector rose more than 50 percent this year but it has not had a direct impact on industrial performance this year. The impact will be noticeable only in 2008 or 2009," the ministry`s secretary general, Agus Tjahajana, said at a year-end press conference here on Thursday.
The investment value was based on a report issued by the Capital Investment Coordination Board (BKPM) on August 31, 2007. The figure did not include investment in the oil and gas sector, banking industry, financial institutions, insurance industry, mining business, coal mining business and household investment and so on, he said.
According to the report, paper and printing material industries topped the list of investment proposals approved with a total investment value of Rp14.5 trillion in eight projects.
Trailing behind in second place was the food industry with a total value of Rp4.7 trillion in nine projects.
Metal, machinery and electronic industries came in third with a total value of Rp3.5 trillion in 15 projects, followed by chemical and pharmaceutical industries with a total value of Rp1.1 trillion in 10 projects.
In 2007, the government issued a total of 79 permits to permanent business establishments.
Meanwhile, foreign investment in the industrial sector in 2007 slightly rose to US$3.622 billion from US$3.604 billion the year before with the number of projects declining to 316 from 361.
Chemical and pharmaceutical industries received the biggest chunk of foreign investment totaling US$1.56 billion in 26 projects.
Metal, machinery and electronic industries came in second with a total investment value of US$265.3 million in 80 projects.
This was followed by food industry (US$572.1 million in 45 projects), paper and printing industries (US$428.5 million in 10 projects), motor vehicle and transportation means industry (US$336.9 million in 29 projects) and wood industry (US$125 million in 13 projects).
Given the high growth in investment in 2007, Agus expressed optimism that investment would increase further next year.
The Industry Ministry has set itself an industrial growth target of 7.4 percent for next year compared to 6.3 percent for this year.(*)
