Investment Trends in Indonesia's Financial Flows 2020-2024

According to the Central Statistics Agency (BPS), the value of investment in Indonesia's flow of funds account (FFA) during the 2020-2024 period tended to increase.

The FFA is a financial data system that records transactions between institutional sectors through various financial instruments over a certain period.

The FFA serves to illustrate the relationship between savings and investment, in both the real and financial sectors, making the flow of funds from surplus sectors to deficit sectors clearer.

Based on type, there are two types of investment covered in the FFA: physical investment or non-financial investment, and financial investment.

Non-financial investment describes the value of changes (additions and reductions) in fixed assets or GFCF (Gross Fixed Capital Formation) and inventories.

Meanwhile, financial investment describes the value of funds placed by economic actors in financial instruments such as stocks, bonds, loans, foreign exchange, and so on.

By type, non-financial investment shows an increasing trend year-on-year, while financial investment is volatile.

In 2024, the value of non-financial investment reached IDR 6,951 trillion, an increase of 9.7% compared to the previous year.

Meanwhile, financial investment experienced a decline in 2022 and 2023. In 2024, its value slightly strengthened by 1.2% to IDR 3,065 trillion.

Therefore, BPS clarified, the proportion of investment in Indonesia was dominated by non-financial investment, which accounted for 69.40% in 2024, while financial investment was 30.60%.

Overall, during 2020-2024, a decline in investment only occurred in 2023, while in 2024 it strengthened again by 6.9% to IDR 10,016 trillion.