The Indonesian Investment Coordinating Board (BKPM) has recorded a significant increase in foreign investment for the first quarter of 2023, with a total realization of Rp172.9 trillion. This marks a 20.2% increase from the same period last year, indicating strong international business confidence in Indonesia despite the global economic slowdown.
Minister of Investment and BKPM Head, Bahlil Lahadalia, attributed this achievement to the high level of investor confidence in Indonesia, particularly under the leadership of President Jokowi.
The realization of foreign investment, which accounts for 53.8% of the total investment, is higher than domestic investment realization (PMDN) recorded at Rp151.9 trillion.
The majority of foreign investment during the first quarter of 2023 was in the manufacturing sector, with the metal industry topping the list at US$2.9 billion. This can be attributed to the government’s policy to develop natural resources through the downstreaming program, which has had a positive impact on investment performance in 2023.
Bahlil further stated that the largest realization of foreign investment was in the transportation, warehouse, and telecommunications sectors, reaching US$1.2 billion.
The chemical and pharmaceutical industry followed closely at US$1.1 billion, while the mining sector recorded US$900 million, and the paper and printing industry recorded US$800 million.
In terms of location, Central Sulawesi province once again topped the list with the highest realization of foreign investment at US$1.9 billion, followed by West Java at US$1.9 billion, DKI Jakarta at US$1.2 billion, Banten at US$1.1 billion, and Riau at US$1.0 billion.
Bahlil stated that the distribution of investment outside of Java was evident in these figures, and that the Ministry of Investment would continue to promote high-quality investment growth that is centered on Indonesia.
In total, investment realization for the first quarter of 2023 reached Rp328.9 trillion, reflecting a 16.5% increase compared to the same period last year.
The significant increase in foreign investment in Indonesia is a positive sign for the country’s economy, indicating strong business confidence in the government’s policies and leadership.
This investment will provide significant opportunities for growth and development, particularly in sectors such as manufacturing and infrastructure, which will contribute to the country’s overall economic development.
The government’s continued efforts to promote high-quality investment and develop natural resources will further enhance Indonesia’s position as an attractive investment destination.
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