BKPM Confident of Achieving Rp390 Tln Invesment Target for 2013

Jakarta - The Investment Coordinating Board (BKPM) is optimistic about achieving its 2013 investment target of Rp390 trillion, its head Chatib Basri said on Friday. "I am optimistic that investment realization will reach close to Rp300 trillion by the end of 2012 and touch Rp390 trillion in 2013," he said during a press conference held to evaluate the government's fiscal targets for next year, a day after the presentation of the draft budget in Parliament on Thursday. Basri pointed out that investment realization till date has already reached Rp148.1 trillion against the Rp283 trillion target set for 2012, which implies a 52 percent fulfillment of investment in the first half of the year itself. He added that the trend in the first half of the year is likely continue till year-end and help in achieving growth that could even surpass the target. "The president has set an investment realization target of Rp390 trillion, which means that if the economic growth rate is accelerated to reach 6.8 percent in 2013, the gross fixed capital formation must also grow by 11 percent during this period, while realization from domestic and foreign investments must touch 25 percent to 30 percent," Basri noted. Basri also said that the rapid growth in the country's middle-class population this year, is also one for the reasons for BKPM¿ optimism. He added that Indonesians' per capita income, which was recorded at around US $4 initially, rose by 5 percent in 2003, and till 2010 was up 18 percent. "Around 110 million Indonesians have a per capita income of US $10," Basri said. Indonesia's healthy growth prospects in the future and it being ranked second among G20 nations after China are also reasons for staying optimistic about the future, he said, adding that while China and India's economies are expected to grow by 7.5 percent and 5.5 percent respectively, Indonesia's economy is not far behind with its 6.4 percent growth rate target. "This growth will attract investors from Asian countries like Japan and Korea," Basri stated. He added that investments will be one of the key factors that will support economic growth in 2013.(*)