Indonesia's Q3 2023 Investment Realization Reaches Rp374.4 Trillion, Still Dominated by Foreign Investment

A report from the Indonesian Investment Ministry/Investment Coordinating Board (BKPM) shows that realized investment in Indonesia reached Rp374.4 trillion in Q3 2023. This represents a 21.6% year-on-year (YoY) increase and a 7% quarter-on-quarter (QoQ) increase.

Realized investment in Q3 2023 was still dominated by Foreign Direct Investment (FDI), amounting to Rp196.2 trillion or 52.4% of total investment.

Domestic Direct Investment (DDI) in the same period reached Rp178.2 trillion, or 47.6% of total investment.

Both FDI and DDI increased compared to the previous quarter (QoQ) and the same period of the previous year (YoY).

In Q3 2023, FDI increased by 16.2% YoY and 5.3% QoQ. Meanwhile, DDI grew by 28.2% YoY and 9% QoQ.

Investment Minister/BKPM Head Bahlil Lahadalia stated that despite Indonesia entering a political year, investors remain interested and confident in investing.

“So, if some people say that during a political year, investors will wait and see, that's normal. But what's actually happening is not a wait-and-see approach; they (investors) are even more aggressive in realizing the investments they've committed to,” said Bahlil in an online press conference on YouTube, Friday (21/10/2023).

By region, realized investment outside Java in Q3 2023 reached Rp190.9 trillion, or 51% of total investment. This represents a 14.7% YoY increase and a 4.9% QoQ increase.

Investment on Java Island totaled Rp183.5 trillion, growing by 29.7% YoY and increasing by 9.4% QoQ.

By sector, the largest investment was in the basic metal, metal goods, non-machinery and equipment sector, receiving Rp56.9 trillion in investment.

This was followed by the mining sector (Rp41.9 trillion); the transportation, warehousing, and telecommunications sector (Rp40.9 trillion); the chemical and pharmaceutical industry sector (Rp28.7 trillion); and the housing, industrial estates, and office sector (Rp25.5 trillion).

The provinces receiving the most investment in Q3 2023 were DKI Jakarta (Rp50.9 trillion), West Java (Rp49.5 trillion), East Java (Rp38.9 trillion), Banten (Rp28 trillion), and North Maluku (Rp27.8 trillion).

Singapore was the largest source of investment (US$4.4 billion), followed by China (US$1.8 billion), Hong Kong (US$1.7 billion), Japan (US$1.3 billion), and Malaysia (US$900 million).