Local news wires are reporting that the Ministry of Investment/ Investment Coordinating Board (BKPM) recently announced Foreign Direct Investment (FDI) in Indonesia reached IDR 163.2-trillion in Q2, 2022, which is an almost 40-percent Year-on-Year increase and more than a 30-percent increase on Q1, 2022.
According to the Jakarta Globe, Domestic Direct Investment (DDI) “also increased, albeit at a slower pace of 30.9-percent, to IDR 139-trillion from the same period last year. In total, BKPM recorded IDR 302.2-trillion of investment in the second quarter, up 35.5-percent from IDR 223-trillion last year. BKPM data exclude investments in oil and gas, finance and banking, home industries, or small and medium enterprises.”
In the first half of 2022, the total amount of investment reached IDR 584.6-trillion, which is almost USD 40-billion and almost half of the total target set for 2022.
Singapore, China, Hong Kong, Japan, and the US have been the top five investors.
Antara News are reporting that Investment Minister Bahlil Lahadalia said that this might be the first time in Indonesia’s history when investment realization has risen this high.
PMA’s accounted for 54-percent of the total investment realization in Q2 2022, while PMDN’s accounted for 46-percent of the total figure.
West Java, Jakarta, Central Sulawesi, East Java, and Riau were the most popular areas for investment, particularly in the sectors covering basic metal, metal goods, non-machinery, and equipment; mining; housing, industrial, and office complex; transportation, warehouse, and telecommunications; as well as food industries.
Bahlil said several factors support Indonesia as an investment destination, such as investor confidence in President Jokowi’s leadership, domestic political stability, better legal processes, as well as transparency in the acceleration of services. “It shows our success in implementing the Job Creation Act,” he added.
Sources: Antara News, Jakarta Globe