Domestic Investment Grew 13 Percent in the First Half of the Year

Amid stagnant domestic economic growth due to slowing consumer spending, investment has been able to support Gross Domestic Product (GDP) growth. Data from the Central Statistics Agency (BPS) recorded that the growth of the Fixed Capital Formation (PMTB) component in the second quarter of 2017 grew by 5.35 percent (YoY), higher than the growth of Household Consumption Expenditure (PK-RT) at 4.95 percent.

Foreign Investment (PMA) and Domestic Investment (PMD) in the January-June 2017 period grew by 13 percent to Rp 336.7 trillion compared to the same period the previous year at Rp 298.1 trillion. This amount is approximately 49.6 percent of the target for the end of this year at Rp 678.8 trillion.

Foreign investment in the first half of 2017 reached Rp 206.9 trillion or 48.2 percent of the targeted Rp 429 trillion. Meanwhile, domestic investment amounted to Rp 129.8 trillion or 52 percent of the target of Rp 249.8 trillion. The proliferation of infrastructure development projects throughout the archipelago has not yet shown its impact on national GDP growth. However, in the medium and long term, its impact on the economy will only be visible.