Indonesia's Investment Realization Reaches Rp328 Trillion in Q1 2023

The Indonesian Investment Ministry/Investment Coordinating Board (BKPM) recorded that investment realization in Indonesia reached Rp328.9 trillion in Q1 2023.

This achievement grew by 16.5% year-on-year (yoy), and by 4.5% quarter-on-quarter (qoq).

“Investment realization in Q1 2023 reached 23.5% of this year's investment target of Rp1,400 trillion,” said Investment Minister/BKPM Head Bahlil Lahadalia in a press conference on Friday (28/4/2023).

In Q1 2023, Foreign Direct Investment (FDI) contributed the most, reaching Rp177.0 trillion, growing by 20.2% yoy and 1.1% qoq.

Meanwhile, Domestic Direct Investment (DDI) in the first quarter of this year amounted to Rp151.9 trillion. This realization grew by 12.4% yoy and 8.8% qoq.

Investment realization in Q1 2023 outside Java reached Rp172.9 trillion (52.6%), and in Java Rp156 trillion (47.4%).

"President Jokowi wants even investment distribution, Indonesia-centric, not Java-centric. My intuition is that in the future, investors will choose outside Java because labor costs are cheaper, infrastructure is better, logistics flow is better, and raw materials outside Java are also better," said Bahlil.

The provinces that received the most investment realization in Q1 2023 were West Java (Rp50 trillion), DKI Jakarta (Rp36.5 trillion), East Java (Rp30 trillion), Central Sulawesi (Rp29.8 trillion), and Banten (Rp25.7 trillion).

Singapore was the largest source of investment realization (USD 4.3 billion), followed by Hong Kong (USD 1.5 billion), China (USD 1.2 billion), Japan (USD 1 billion), and the United States (USD 800 million).

By business sector, the largest investment realization went to the basic metal industry, metal goods, excluding machinery and equipment, with a value of Rp46.7 trillion.

Then, the transportation, warehousing, and telecommunications sector received Rp36.1 trillion in investment, the mining sector Rp33.5 trillion, the housing, industrial estates, and office sector Rp27.9 trillion, and the chemical and pharmaceutical industry sector Rp22.6 trillion.