This is the Most Popular Sector for Foreign Investors in Q3 2022

According to data from the Indonesian Investment Coordinating Board (BKPM), foreign investment realization in Indonesia reached US$168.9 billion in Q3 2022.

The largest Foreign Direct Investment (FDI) in Q3 2022 flowed into the basic metal industry, metal goods, excluding machinery and equipment, amounting to US$2.78 billion. This is equivalent to approximately 1.64% of the total FDI realization during that period.

Next, the electricity, gas, and water sector received FDI of US$1.22 billion, or about 0.72% of the total FDI realization in Q3 2022.

Then, the mining sector received US$1.05 billion in FDI. Following this, the chemical and pharmaceutical sector received US$958.42 million; the transportation, warehousing, and telecommunications sector US$859.24 million; and the housing, industrial estates, and office sector US$765.49 million.

Furthermore, the food industry sector received US$698.7 million in foreign investment; the paper and printing sector US$648.22 million; the food crops, plantations, and livestock sector US$503.09 million; while the other services sector received US$319.44 million.

The trade and repair sector had the highest number of FDI projects in Q3 2022 with a total of 4,719 projects. This was followed by other services with 3,293 projects, and hotels and restaurants with 2,696 projects.

Meanwhile, in Q4 2022, the United States Ambassador assessed that the investment climate in Indonesia could be disrupted by the new Criminal Code (KUHP) enacted by the DPR (House of Representatives) on Tuesday (December 6, 2022).

The US Ambassador to Indonesia, Sung Kim, considered that the new KUHP contains several articles regulating the private sphere, potentially deterring foreign investors from investing.

"The criminalization of individual private decisions will be a significant factor in the decision-making matrix of many companies in determining whether or not to invest in Indonesia," said Sung Kim in his press release on Tuesday (December 6, 2022).

"The result could lead to a decrease in foreign investment, tourism, and travel," he added.