Singapura Emerges as Top Foreign Investor in Indonesia

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In a notable development, the Foreign Capital Inflow into the country continues to exhibit an upward trend, and an interesting revelation emerges regarding the top foreign investor in Indonesia. Singapura stands out as the largest foreign investor, with its investments reaching an impressive US$7.7 billion during the period of January to June 2023.

The investment landscape also showcases China and Hong Kong as significant players in the foreign investment scene, securing the second and third positions with investments valued at US$3.8 billion and US$3.5 billion, respectively. Korea Selatan claims the fourth spot with US$2 billion, while Amerika Serikat (AS) follows closely at fifth position with a substantial investment value of US$1.6 billion.

The second quarter of 2023 continues to highlight the prominence of Singapura as the top investor, with an impressive realization of US$3.4 billion in investments, thus overtaking China’s realization of US$2.6 billion.

During the press conference on the second-quarter investment realization, Bahlil emphasizes the significance of Singapura as a crucial investment hub and acknowledges the role of Indonesian investors in the process. He mentions, “Singapura ini sekali lagi saya tidak akan bosan. Ini bukan uang Singapura semua tapi sebagai hub sebagian investasi ini orang Indonesia. Saya sudah ngomong investor Indonesia, kita belum punya financial center.”

As an effort to facilitate and attract more investments, Bahlil discloses BKPM’s plan to support the establishment of a financial center or hub in the Capital City of the Country (IKN). This move aims to encourage direct investments from Singapore into Indonesia.

While Singapura remains a dominant player in the foreign investment landscape, Bahlil sheds light on the need to balance the scale by improving domestic investments, as he candidly states, “Ini kalau kita mau jujur ya tapi ya sudah lah, kita harus memperbaiki.”

The dynamics of foreign capital inflow and the role of Singapura as a major investor bring to light the potential for further economic growth and development in Indonesia. The endeavor to strengthen domestic investments and foster an enabling environment for both foreign and domestic investors showcases the nation’s commitment to creating a robust and sustainable economy.