Indonesia's Job Absorption Plummets Amidst Soaring Foreign Investment

Employment

Premium

Cindy Mutia Annur 25/01/2023 18:07 WIB

URL has been copied

Memuat...

Foreign direct investment (FDI) realization in Indonesia surged significantly in Q4 2022. However, this was not commensurate with the absorption of labor from said foreign investment.

Employment Absorption by Foreign and Domestic Investment Companies (December 2019-December 2022)

A Small Font
A Medium Font
A Bigger Font

You are accessing content Single Data Premium.
To continue, please subscribe or buy individually.

Professional

Enjoy premium access with a more affordable price.

Start from

~~Rp300.000~~ 150.000/month

Access more premium content and exclusive features for customers.

Start from

50.000/month

Hanya Rp833 per artikel

More details »

Buy Retail

Read the article immediately “Indonesia's Job Absorption Plummets Amidst Soaring Foreign Investment”.

Rp10.000

We accept the following payments:

Some payment methods are still in the process of being activated.

Employment Absorption by Foreign and Domestic Investment Companies (December 2019-December 2022)

Download

Source

A Small Font
A Medium Font
A Bigger Font

The Investment Ministry/Investment Coordinating Board (BKPM) recorded that investment realization in Q4 2022 reached Rp314.8 trillion. Foreign Direct Investment (FDI) was recorded at Rp175.2 trillion, contributing 55.6% to total investment realization and growing by 43.3% year-on-year (YoY).

"Indonesia is one of the countries with the highest FDI growth," said Investment Minister/Head of BKPM Bahlil Lahadalia in a press conference on Tuesday (24/1/2023).

However, the surge in foreign investment in Q4 2022 was not proportional to its job absorption.

According to the BKPM report, job absorption from FDI was only 134,952 people, or 39.70% of total investment job absorption in Q4 2022. This figure decreased by 5.25% quarter-to-quarter (QtQ), but grew slightly by 0.62% year-on-year (YoY).

FDI job absorption in Q4 2022 was even lower than in Q4 2019, which reached 158,910 people. Yet, FDI realization in Q4 2019 was significantly lower than in Q4 2022.

Meanwhile, during the last three months of 2022, the highest job absorption came from Domestic Direct Investment (DDI), at approximately 204,927 people, contributing 60.3% to total Indonesian investment job absorption. This figure grew by 11.9% quarter-to-quarter (QtQ) and 26.98% year-on-year (YoY).

The trend of job absorption from FDI and DDI per quarter tended to fluctuate throughout 2022. However, the total number increased continuously.

Editor : Erlina Fury Santika

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."