Singapore Remains Dominant in Foreign Investment in Q2 2021

The Indonesian Investment Ministry/Investment Coordinating Board (BKPM) reported that Singapore remained Indonesia's top investor in Q2 2021. Singapore invested US$2.1 billion, or 26.4% of total foreign direct investment (FDI) in Indonesia.

However, Singapore's investment in this quarter decreased by 19.1% compared to the previous quarter. Singapore invested US$2.6 billion in Q1 2021.

Hong Kong ranked second with US$1.4 billion in investment during April-June 2021. The Netherlands and Japan followed with investments of US$1.1 billion and US$715.8 million, respectively.

With a total of 13,375 projects, the basic metal industry, metal goods, excluding machinery and equipment, was the sector that received the most foreign investment. This amounted to US$1.8 billion in Q2 2021.

Mining followed with US$944 million in investment. This is in line with the government's focus on prioritizing the mining sector. One example is the development of nickel, which will be the basis for electric vehicle batteries domestically.

Overall, Indonesia received almost US$8 billion in FDI, equivalent to Rp 116.8 trillion (using an exchange rate of Rp 14,600/USD). Foreign investment still dominated compared to domestic investment (PMDN), which amounted to Rp 106.2 trillion. Total investment increased by 1.5% in Q2 2021 compared to the previous quarter.