Foreign Capital Infusion Drives Investment Realization to Peak in Q4 2022

The Investment Ministry/Investment Coordinating Board (BKPM) reported that investment realization in Q4 2022 reached Rp314.8 trillion.

This realization grew by 2.3% compared to Q3 2022 (quarter-to-quarter/qtq) or grew by 30.3% compared to Q4 2021 (year-on-year/yoy).

In Q4 2022, Foreign Direct Investment (FDI) reached Rp175.2 trillion, contributing 55.6% to the total investment realization.

"Indonesia is one of the countries with the highest FDI growth, where quarterly FDI grew by 3.7%, but annually compared to 2021, it grew by 43.3%," said Investment Minister/Head of BKPM Bahlil Lahadalia in a press conference on Tuesday (24/1/2023).

Bahlil stated that this achievement in FDI realization was the result of cooperation from all parties. He assessed that the Indonesian people were able to maintain a stable and balanced public opinion, thus contributing to positive investment growth.

Meanwhile, Domestic Direct Investment (DDI) in Q4 2022 reached Rp139.6 trillion, contributing 44.4% to the total investment realization. This DDI value grew by 0.5% quarter-to-quarter (qtq) and increased by 17% year-on-year (yoy).

By region, investment realization in Java in Q4 2022 reached Rp164.2 trillion (52.2%), while investment outside Java reached Rp150.6 trillion (47.8%).

The provinces that received the most investment in Q4 2022 were West Java, with Rp46.2 trillion; Central Sulawesi, with Rp34.7 trillion; DKI Jakarta, with Rp34 trillion; East Java, with Rp30.9 trillion; and Banten, with Rp23.5 trillion.

Furthermore, by sector, the largest investment realization in Q4 2022 went to the mining industry, valued at Rp39.8 trillion. This was followed by the base metal, metal goods, non-machinery and equipment industry, valued at Rp39.4 trillion.

Next were the transportation, warehousing, and telecommunications sector at Rp36.8 trillion; the chemical and pharmaceutical industry at Rp33.5 trillion; and housing, industrial estates, and office spaces at Rp28.9 trillion.

Cumulatively, the total investment realization throughout January-December 2022 reached Rp1,207.2 trillion, up 34% year-on-year (yoy). This figure also reached 100.6% of the 2022 investment target of Rp1,200 trillion.

"This is one of the largest investment growths for Indonesia in history," said Bahlil.