Authorities have reported a 689% increase in foreign investment and domestic capital in Bali’s provincial economy over the 9-month period between January to September of this year.

Compared to the same period in 2014, which saw a total of Rp. 2.9 trillion of investment funds injected into the economy, figures have spiked up to Rp. 22.9 trillion.

According to the Head of Investment and Regional Licensing (BPMPD), Ida Bagus Parwata, funds have increased as investors are anticipating the commencement of the ASEAN Economic Community (AEC) agreement by the end of the year. The AEC is set to establish a common market amongst all ASEAN member nations liberalizing labour and capital flows.

“Businessmen want to seize opportunities. There are many countries which can make use of our visa free services, which has led to tourist number increases, the market is promising,” said Parwata on Wednesday 2 December.

It is understood the Rp. 22.9 trillion figure comes as a surprise as economic analysts targeted Rp. 11 trillion as the ballpark at the end of 2014.

Parwata revealed that the tertiary (service) sector is still the favorite investment area with an investment of Rp22,8 trillion, while the primary sector came in at Rp21,7 billion, and secondary Rp165,3 billion.

The service sector is the most desirable area of trade and investment reached Rp16 trillion, comprising of 4,124 projects, while hotels and restaurants amounted to Rp5 trillion, covering 660 projects.

The most heavily invested regency was Badung with investors directing Rp. 15.1 trillion, over 65% of funds.

Interestingly, he said, foreign investment to Bali, particularly from the countries of Singapore, Malaysia, and the British Virgin Islands, in the third quarter / 2015 has increased sharply.

Tempo: Investasi ke Bali hingga September capai Rp. 22,9 triliun

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