The Capital Investment Coordinating Board (BKPM) predicted that the largest part or 43 percent of investment in the country is for the manufacturing sector this year.
In the first nine months of this year, realization of investment projects reached Rp172 trillion or 43 percent of the total investment.
Investments in the primary sector such as raw material extraction totaled only Rp72 trillion (18 percent), and in tertiary sector such as service business, construction and infrastructure industries were valued at Rp155.9 trillion (39 percent).
“We will put the manufacturing sector in the priority for investment in 2016 to support the process of industrialization. Expansion of the manufacturing sector will also contribute to development of other sectors especially infrastructure,” Franky Sibarani, head of BKPM said.
BKPM would also encourage investment in export oriented industries , sector producing import substitutes and labor intensive projects, he said.
“In addition to the three sub-sectors, we also will facilitate investment in the development of resource based downstream industries,” he said.
In 2014, investment in the manufacturing sector contributed Rp1991.1 trillion or 42.99 percent of total investment in the country with primary sector contributing 19.81 percent and tertiary sector accounting for 37.2 percent.
Franky expressed optimism that investment in 2015 would overshoot the target of Rp519 trillion.
Investment is predicted to reach Rp540 trillion-Rp545 trillion in 2015, up from Rp463.1 trillion in 2014, he said.
Based on BKPM record, investment in the first nine months of this year already reached Rp400 trillion , up 16.7 percent from Rp342 trillion in the same period last year.
The investment in the first nine months of this year already reached 77 percent of the target of Rp519.5 trillion.
In the January-September period, domestic investment rose 16.4 percent to Rp133.2 trillion on-year and foreign investment increased 16.9 percent to Rp266.8 trillion.
Realization of investment in the first nine months of this year created 1,059,734 jobs n or an increase of 10.4 percent on year.