Friday, May 30, 2014

Singapore And Malaysia Dominated Foreign Investment in North Sumatra

28 May 2014

Investors from Singapore and Malaysia dominated foreign investment in North Sumatra although investors from China are also very interested to invest this this province. This issue was brought up by the Head of Investment and Promotion Board for North Sumatra - Indonesia, Purnama Dewi.

From the total realization of Foreign Investment (PMA) on first quarter 2014 IDR 1.286 trillion (USD 110.5 million), Singapore had been contributing to 47% and Malaysia with 20%. The rest are Thailand, Taiwan, South Korea, Hong Kong, England and several other countries, Purnama Dewi said in Medan on Tuesday.

“Although Singapore and Malaysia are dominating, but investors from other countries such as China are regularly seeking for investment opportunities in North Sumatra,” Purnama Dewi said.

Investors from China are interested in industries and service sectors such as highway and energy infrastructures development,” she said.

They also expect for domestics investors to realize domestic investment (PMDN) although the value will be relatively smaller than foreign investment.

The realization of PMDN for first quarter 2014 is IDR 559 billion (USD 48 million) or almost 50% from the PMA value.

According to the Secretary of Employers Association (Apindo) North Sumatra, Laksamana Adiyaksa, Investors from North Sumatra prefers to expand their business than realizing new investment as the permit is easier.

He also admitted that business owners also prefer to invest in service sector due to the promising market.

“We hope that domestic investors are supported so that the PMDN value could catch up with PMA value,” she said.

No comments:

Post a Comment