2023 Foreign Investment Distribution: West Java Receives the Most

According to data from the Indonesian Investment Coordinating Board (BKPM), Indonesia received approximately US$50.27 billion in foreign investment realization throughout 2023.

The largest portion of this foreign direct investment (FDI) flowed into West Java, amounting to US$8.28 billion or 16.5% of the total FDI.

Besides West Java, other provinces in the top 3 are Central Sulawesi and North Maluku, with FDI values as shown in the graph.

According to the Katadata Insight Center (KIC) and Grant Thornton, the top 3 provinces in this list benefited from foreign investment related to the electric vehicle industry.

In the report *Unraveling Indonesia’s Prospects in 2024*, KIC-Grant Thornton mentions several battery factories being developed in West Java.

"One of them is the PT HKML Battery Indonesia factory in Karawang, which is one of the largest electric vehicle battery producers in Southeast Asia," they stated.

KIC-Grant Thornton also mentions that foreign investment in Central Sulawesi and North Maluku primarily flows into the nickel sector, a raw material for battery production.

"Because nickel is a key strategic sector, North Maluku is likely to continue benefiting from the development of this sector in the medium to long term," KIC-Grant Thornton wrote in their report.

"Similar to North Maluku, Central Sulawesi also benefits from significant investment in nickel mining and related manufacturing activities," they stated.