Commodities to drive investment: BKPM

The country's investment sector will grow 15.2% this year despite fe..." /> Commodities to drive investment: BKPM

The country's investment sector will grow 15.2% this year despite fe...">
Commodities to drive investment: BKPM

The country's investment sector will grow 15.2% this year despite fears of global economic woes, the chief of the investment board (BKPM) said, while a survey by ING Bank placed Indonesia third on the list of countries likely to come out best from the crisis, after China and India.

BKPM chief M. Lutfi said rising prices of primary commodities will continue to attract investment, Asia Pulse reported Tuesday (15/4/08).

In the first quarter of 2008, the value of implemented projects shot up 80% from $4.48 billion in the same period last year, he said. Investment in telecommunications, pulp and paper projects accounted for the largest portion during the January-March period.

Growing demand for working capital credits, up to Rp188 trillion in February from Rp183.8 trillion in December, 2007 indicated continued expansion of the investment sector, an official of the National Development Planning Board (Bappenas) said.

The finance ministry however predicted that the global financial crisis will have an impact on investment in Indonesia late this year or early next year.

Head of fiscal policy Anggito Abimanyu confirmed the picture of the current situation painted by Lutfi, but said a slowdown was likely in around six months.

ING Bank, in a quarterly ‘dashboard’ investment survey, ranked Indonesia as the third most optimistic market after China and India, The Jakarta Post reported.

The survey measures and tracks investor sentiment and behavior from 13 Asia-Pacific markets, with each market assigned an investor sentiment score ranging from 0 to 200.

India, China and Indonesia recorded the highest level of investor optimism, scoring 168, 136 and 131 respectively.

Other countries surveyed were Hong Kong, South Korea, Malaysia, the Philippines, Singapore, Thailand, Taiwan, Japan, Australia and New Zealand.

ING Asia chief investment officer Hou Wey Fook said despite the relative level of confidence there would be effects.

He said 58% of Indonesian investors claimed the crisis had somehow affected their investment decisions during the first three months of the year.

"It is likely GDP growth here will be impacted marginally and will be driven mainly by inter-regional trade and domestic growth," he said.

Figures from a range of industries continued to show positive development on last year’s figures.

Motorcycle sales rose 37% to 1.44 million in the first quarter from the same period last year, PT Semen Gresik – the country’s largest cement producer – reported 8.1% first quarter sales growth, and retailer PT Ramayana Lestari Sentosa said its sales in the first quarter of this year were estimated to rise 24% to Rp1.04 trillion ($111 million) up from Rp839.3 billion year-on-year.

Meanwhile Vice President Jusuf Kalla said Friday the government expects to decide by July whether to increase fuel prices as crude oil continue at record highs.

"There is still time to make adjustments if it is indeed needed," Kalla said, when asked about government subsidies on oil prices in the light of rising world crude prices. "The decision could be made by having a one-day meeting, isn't it? It would be between May to July," Reuters reported him as saying.

State utility PT PLN sealed a syndicated loan of up to Rp5.7 trillion ($619.90 million) from domestic banks to finance the construction of five coal-fired power plants, according to Thomson Financial.

Share prices closed 0.3% higher on Friday for its fourth straight day of gains, closing at 2,349.27, giving a gain of 2% over the week. The rupiah was trading at 9,190/9,195 to the US dollar.
<span style="font-size: 14pt"><span style="font-weight: bold">Commodities to drive investment: BKPM</span></span><br /> <br /> The country's investment sector will grow 15.2% this year despite fears of global economic woes, the chief of the investment board (BKPM) said, while a survey by ING Bank placed Indonesia third on the list of countries likely to come out best from the crisis, after China and India.<br /> <br /> BKPM chief M. Lutfi said rising prices of primary commodities will continue to attract investment, Asia Pulse reported Tuesday (15/4/08).<br /> <br /> In the first quarter of 2008, the value of implemented projects shot up 80% from $4.48 billion in the same period last year, he said. Investment in telecommunications, pulp and paper projects accounted for the largest portion during the January-March period.<br /> <br /> Growing demand for working capital credits, up to Rp188 trillion in February from Rp183.8 trillion in December, 2007 indicated continued expansion of the investment sector, an official of the National Development Planning Board (Bappenas) said.<br /> <br /> The finance ministry however predicted that the global financial crisis will have an impact on investment in Indonesia late this year or early next year.<br /> <br /> Head of fiscal policy Anggito Abimanyu confirmed the picture of the current situation painted by Lutfi, but said a slowdown was likely in around six months.<br /> <br /> ING Bank, in a quarterly &lsquo;dashboard&rsquo; investment survey, ranked Indonesia as the third most optimistic market after China and India, The Jakarta Post reported.<br /> <br /> The survey measures and tracks investor sentiment and behavior from 13 Asia-Pacific markets, with each market assigned an investor sentiment score ranging from 0 to 200.<br /> <br /> India, China and Indonesia recorded the highest level of investor optimism, scoring 168, 136 and 131 respectively.<br /> <br /> Other countries surveyed were Hong Kong, South Korea, Malaysia, the Philippines, Singapore, Thailand, Taiwan, Japan, Australia and New Zealand.<br /> <br /> ING Asia chief investment officer Hou Wey Fook said despite the relative level of confidence there would be effects.<br /> <br /> He said 58% of Indonesian investors claimed the crisis had somehow affected their investment decisions during the first three months of the year.<br /> <br /> &quot;It is likely GDP growth here will be impacted marginally and will be driven mainly by inter-regional trade and domestic growth,&quot; he said.<br /> <br /> Figures from a range of industries continued to show positive development on last year&rsquo;s figures.<br /> <br /> Motorcycle sales rose 37% to 1.44 million in the first quarter from the same period last year, PT Semen Gresik &ndash; the country&rsquo;s largest cement producer &ndash; reported 8.1% first quarter sales growth, and retailer PT Ramayana Lestari Sentosa said its sales in the first quarter of this year were estimated to rise 24% to Rp1.04 trillion ($111 million) up from Rp839.3 billion year-on-year.<br /> <br /> Meanwhile Vice President Jusuf Kalla said Friday the government expects to decide by July whether to increase fuel prices as crude oil continue at record highs.<br /> <br /> &quot;There is still time to make adjustments if it is indeed needed,&quot; Kalla said, when asked about government subsidies on oil prices in the light of rising world crude prices. &quot;The decision could be made by having a one-day meeting, isn't it? It would be between May to July,&quot; Reuters reported him as saying.<br /> <br /> State utility PT PLN sealed a syndicated loan of up to Rp5.7 trillion ($619.90 million) from domestic banks to finance the construction of five coal-fired power plants, according to Thomson Financial.<br /> <br /> Share prices closed 0.3% higher on Friday for its fourth straight day of gains, closing at 2,349.27, giving a gain of 2% over the week. The rupiah was trading at 9,190/9,195 to the US dollar.<br />
Jawawa.net: Indonesian Business and Investment News Aggregator
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