Foreign Investment in Indonesia Grows 63.6%, the Largest in History!

Foreign investment (PMA) in Indonesia reached Rp 168.9 trillion in the third quarter of 2022. This figure shows a growth of 63.6 percent (year-on-year/YoY) and become the biggest record in history. This news was conveyed directly by the Minister of Investment / BKPM Bahlil Lahadalia.

“FDI grew 63 percent, the largest in history. So, this is extraordinary,” said Bahlil in a press conference on Investment Realization for Quarter III/2022 at the Ministry of Investment/BKPM Office, South Jakarta, Monday (24/10/2022).

Based on data from the Ministry of Investment / BKPM, the realization of FDI is indeed higher than domestic investment (PMDN) which was recorded at Rp. 138.9 trillion or grew 22.5 percent YoY during the third quarter of 2022.

Meanwhile, foreign investment entering Indonesia is in five main sectors. First, the base metal industry, metal goods, not machinery and equipment amounted to US$2.8 billion.

Second, electricity, gas, and water of US$ 1.2 billion. Third, mining of US$1.1 billion. Fourth, the chemical and pharmaceutical industry of US$1 billion. Lastly, the transportation, warehouse, and telecommunications sectors are worth US$0.9 billion.

Meanwhile, the main country of origin for FDI was Singapore with a contribution of US$3.8 billion, followed by China with US$1.6 billion, Japan with US$1 billion, Hong Kong with US$1 billion, and Malaysia with US$0.9 billion.

“Cumulatively [January-September 2022] foreign investment entering Indonesia reached Rp 479.3 trillion or grew 44.5 percent YoY,” said Bahlil.

Furthermore, the Ministry of Investment noted that there were five provinces with the highest realization of FDI during the third quarter of 2022. The five provinces are:

1. West Java
   FDI realization in West Java was US$ 1.7 billion or 14 percent of the total investment in the third quarter of 2022.
2. Central Sulawesi
   FDI realization in Central Sulawesi was US$ 1.6 billion or 13.9% of the total investment in the third quarter of 2022.
3. North Maluku
   FDI realization in North Maluku was US$ 1.2 billion or 10.5% of the total investment in the third quarter of 2022.
4. DKI Jakarta
   FDI realization in DKI Jakarta was US$ 1.7 billion or 8.3 percent of the total investment in the third quarter of 2022.
5. Banten
   FDI realization in Banten was US$ 0.9 billion or 8.1 percent of the total investment in the third quarter of 2022.

Throughout 2021, ASEAN member countries will receive foreign direct investment (FDI) with a total value of US$174 billion. This was reported by the ASEAN Secretariat in the ASEAN Investment Report released in September 2022.

Indonesia is the second largest recipient of foreign direct investment, after Singapore.