JAKARTA – The ministry of investments/Investment Coordinating Board (BKPM) reported that foreign investments (PMA) in Indonesia’s agriculture sector during the period of 2015 – March 2021 were dominated by the investments in the oil palm plantations.
The investment ministry’s Agribusiness Sub-Directorate Head Jumina Sinaga said that the foreign investors in the sub-sectors of food crops, plantations and animal husbandry in Indonesia are dominated by those from Singapore with a percentage of 53.7 percent, followed by those from Malaysia at 15.8 percent.
“It is also in line with the fact that investments in palm oil sector are mostly from the two countries,” Jumina was quoted by Antara as saying recently.
Jumina pointed out that the realization of foreign investments in the agriculture sector during the period of 2015 – March 2021 reached US$9.5 billion, which contributes around 5.2 percent of the total foreign investments of Indonesia. “The foreign investments in the agriculture sector are mostly in Kalimantan and Sumatera islands,” said Jumina.
Meanwhile, domestic investments (PMDN) in the agriculture sector during the same period reached Rp173.9 trillion, which are 9.1 percent of the total PMDN of Indonesia.
Associate Researcher of the Center for Indonesian Policy Studies (CIPS) Donny Pasaribu said during the same occasion that other sub-sectors besides the palm oil should be also promoted to get new investments. “Other sub-sectors besides the palm oil should be further promoted to get more foreign investments,” she said.
Donny underlined the importance of foreign investments in the agriculture sector to increase agriculture productivity, quality, and efficiency to create food price affordability for the general public.
The foreign investments are expected to bring technology to increase productivity, and accessibility to the global market.
“We see the foreign investments can bring technology, management, foreign connections and access to the global market,” said Donny. (*)
Source: KOMPAS.com