Investment Realization in 2023 Surpasses Target, Reaching Rp1.418 Trillion

Based on a report from the Indonesian Investment Ministry/Investment Coordinating Board (BKPM), investment realization in Indonesia throughout 2023 reached Rp1,418.9 trillion, surging 17.5% compared to 2022 (year-on-year/yoy).

This achievement also absorbed 1,823,543 workers and exceeded President Jokowi's target.

Investment Minister/Head of BKPM Bahlil Lahadalia stated that the initial target for 2023 investment realization in the National Medium-Term Development Plan (RPJMN) was Rp1,099.8 trillion.

Subsequently, according to Bahlil, Jokowi raised the 2023 investment realization target to Rp1,400 trillion.

"Alhamdulillah, (the target) was achieved at Rp1,418.9 trillion," said Bahlil in an online press conference on the BKPM YouTube account, Wednesday (24/1/2024).

Investment realization in Indonesia has also consistently exceeded strategic plan (renstra) targets in the last five years, as shown in the graph.

The 2023 investment realization consisted of foreign direct investment (FDI) of Rp744.0 trillion, equivalent to 52.4% of the total realization.

Domestic direct investment (DDI) amounted to Rp674.9 trillion or 47.6%.

Annually, FDI realization in 2023 grew by 13.7% (yoy), while DDI grew by 22.1% (yoy).

By region, investment realization outside Java throughout 2023 reached Rp730.8 trillion or 51.5% of total investment, and increased by 14.8% (yoy).

Meanwhile, investment realization in Java was Rp688.1 trillion or 48.5%, and surged by 20.5% (yoy).

Based on the business sector, the most investment in 2023 went to the basic metal industry, metal goods, excluding machinery and equipment, valued at Rp200.3 trillion.

This was followed by the transportation, warehousing, and telecommunications sector at Rp159.8 trillion; the mining sector at Rp156.5 trillion; the housing, industrial estates, and office sector at Rp115.2 trillion; and the chemical and pharmaceutical industry sector at Rp105 trillion.

Bahlil stated that in 2023, the most investment flowed into West Java, DKI Jakarta, East Java, Central Sulawesi, and Banten.

The five countries that invested the most in Indonesia were Singapore, China, Hong Kong, Japan, and Malaysia.