REPUBLIKA.CO.ID, JAKARTA -- Indonesia palm oil business was dominated by foreign investment. Data of Investment Coordinating Board (BKPM) stated that the palm oil plantation investment realization reached Rp 15.65 trillion in the first half of 2015, foreign investment of Rp 10.62 trillion, while the value of domestic investment of Rp 5.03 trillion.

"While in the palm oil processing industry, the realization of the investment was Rp 7.36 trillion. Foreign was Rp 1.56 trillion and local was Rp 5.8 trillion," said Head of BKPM, Franky Sibarani, Tuesday (1/9).

Realization of foreign investment in palm oil processing industry in Indonesia grew by 195 percent during 2010-2014. In the same period, realization of foreign investment in palm oil plantation grew by 38 percent.

This value was higher than the realization of domestic investment in palm oil processing industry and palm oil plantation that grew by 176 percent and 16 percent.

Franky asserted, BKPM will oversee the realization of the license in principle that has been proposed, so that in the next 3 to 5 years, the palm oil sector in Indonesia can increasingly stretch. The palm oil sector should give large contribution in the national economy.

He mentioned, submission of investment plan through license in principle to the first half of 2015, both by foreign and local investors has reached Rp 57.46 trillion. There are a total value of Rp 48.14 trillion of palm oil plantations and Rp 9.32 trillion of palm oil processing industry.

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