JAKARTA, NNC – Singapore has became the largest foreign investor in Indonesia with USD8.4 billion.
While, Japan, in second position with USD5 billion, is followed by China with USD3.4 billion, Hong Kong with USD2.1 billion, and South Korea in fifth position with USD2 billion.
Singapore and Hong Kong are at the two top as both countries play role as aggregators or collectors because both are financial hub, said Head of the Investment Coordinating Board (BKPM) Thomas Lembong.
"I want to slowly encourage us to seek, who is exactly behind Singapore? Who's behind Hong Kong?" said Thomas at his office on Tuesday (1/30/2018).
Thomas acknowledged that the money of Indonesian citizens are also widely circulate in Singapore. According to him, it is legitimate if the money of Indonesians parked in Singapore can re-enter Indonesia in the form of foreign investment (PMA).
"I guess Singapore investment is also large in India and Europe. We only see the first land, and in the next year we have to fix and track who is behind Singapore and Hong Kong," added he.
Thomas suspects China's investment growth will remain strong in the future. He also believes the Chinese investment portion is also found in high Singapore and Hong Kong investment.
"I am sure from Hong Kong and Singapore there is a portion of China, China is growing strong and the trend will survive," he concluded.
BKPM recorded foreign investment throughout 2017 reached IDR692.8 trillion, or exceeded the target set at IDR678.8 trillion.
Domestic investment (PMDN) throughout 2017 reached IDR262.3 trillion, up 21.3 percent compared to 2016 with IDR216.2 trillion. Foreign direct investment (FDI) reached IDR430.5 trillion, up 8.5 percent compared to 2016's achievement of IDR396.6 trillion.