Indonesia Records IDR 223 Trillion in Investment Realization in Q2 2021

Indonesia's investment realization increased in the second quarter of 2021, according to a report by the Indonesian Investment Coordinating Board (BKPM). The government secured Rp 223 trillion (approximately US$15 billion), a 1.5% increase compared to the previous quarter and a 16.2% increase compared to the same period last year.

This investment realization comprises domestic investment (PMDN) and foreign investment (PMA). The government recorded Rp 106.2 trillion in PMDN and Rp 116.8 trillion in PMA during April-June 2021.

Housing, industrial estates, and office spaces were the sectors with the largest investment realization in Q2 2021, totaling Rp 31.3 trillion. This was followed by the basic metal industry, metal goods, excluding machinery and equipment, which generated Rp 29.7 trillion.

Indonesian Investment Minister Bahlil Lahadalia stated that the government is prioritizing the mining sector, which attracted Rp 20.3 trillion in investment. One focus is on nickel production for electric vehicle batteries in Indonesia.

West Java attracted the largest investment at Rp 35.3 trillion. DKI Jakarta and East Java followed with Rp 25.3 trillion and Rp 17.7 trillion respectively.

Amidst the COVID-19 pandemic, domestic job absorption increased by 18.5% compared to the same period last year. A total of 311,922 people were employed in various investment projects in Q2 2021.