Indonesia Receives Rp349 Trillion in Investment in Q2 2023, Majority from Foreign Capital

The Investment Ministry/Investment Coordinating Board (BKPM) reported that investment realization in Indonesia reached Rp349.89 trillion in Q2 2023.

This realization grew by 15.7% year-on-year (yoy), and by 6.3% quarter-on-quarter (qoq).

Investment realization in Q2 2023 mostly came from Foreign Direct Investment (FDI), amounting to Rp186.3 trillion or 53.3% of total investment.

Meanwhile, Domestic Direct Investment (DDI) reached Rp163.5 trillion or 46.7% of total investment.

Both FDI and DDI realizations increased, compared to the previous quarter (qoq) and the same period of the previous year (yoy).

In Q2 2023, FDI grew by 14.2% yoy and 5.2% qoq. DDI grew by 17.6% yoy and 7.6% qoq.

"This means that even though the majority of our investment remains (from) foreign sources, domestic investment also grew significantly. In fact, DDI growth is higher than FDI, although the accumulated value of FDI is higher," said the Investment Minister/Head of BKPM Bahlil Lahadalia in an online press conference on YouTube, Friday (April 21, 2023).

Based on region, investment realization outside Java in Q2 2023 reached Rp182 trillion or 52% of total investment. This achievement increased by 15.9% yoy and grew by 5.2% qoq.

Investment value on Java Island was recorded at Rp167.8 trillion, growing by 15.6% yoy and increasing by 7.5% qoq.

The provinces receiving the most investment in Q2 2023 were West Java (Rp53.7 trillion), DKI Jakarta (Rp43 trillion), East Java (Rp31.1 trillion), Central Sulawesi (Rp26.6 trillion), and Banten (Rp24.9 trillion).

Singapore was the largest source country of investment (US$3.4 billion), followed by China (US$2.6 billion), Hong Kong (US$2 billion), Japan (US$1 billion), and Malaysia (US$800 million).

Based on business sector, the largest investment realization went to the transportation, warehousing, and telecommunications sector at Rp43 trillion.

Then there is the basic metal industry, metal goods, non-machinery and equipment sector which received Rp42.4 trillion in investment; the mining sector Rp37.9 trillion; the housing, industrial estates and office sector Rp30.4 trillion; and the electricity, gas, and water sector Rp25.6 trillion.