Local Investment Absorbs More Workers Than Foreign Investment

Employment

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Adi Ahdiat 06/03/2025 17:20 WIB

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According to BKPM data, from 2020 to 2024, local investment consistently absorbed more workers than foreign investment.

Absorption of Workers from Domestic and Foreign Investment in Indonesia (2020-2024)

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Absorption of Workers from Domestic and Foreign Investment in Indonesia (2020-2024)

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Domestic investment (PMDN) in Indonesia is often smaller than foreign investment (PMA).

However, domestic investment absorbs more workers.

According to data from the Indonesian Investment Coordinating Board (BKPM), the realization of local/PMDN investment in 2024 reached Rp814 trillion, absorbing 1.47 million workers.

Meanwhile, the realization of foreign/PMA investment in 2024 was larger, at Rp900.2 trillion, but absorbed fewer workers, namely 982,000 people.

The trend of PMDN absorbing more workers than PMA has also occurred since 2020, as seen in the graph.

The following is a comparison of the value of local/PMDN and foreign/PMA investment in Indonesia during 2020-2024:

* 2020: PMDN Rp413.5 trillion, PMA Rp412.8 trillion
* 2021: PMDN Rp447.1 trillion, PMA Rp454 trillion
* 2022: PMDN Rp552.8 trillion, PMA Rp654.4 trillion
* 2023: PMDN Rp674.9 trillion, PMA Rp744 trillion
* 2024: PMDN Rp814 trillion, PMA Rp900.2 trillion

Editor : Adi Ahdiat

"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."

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Local Investment Absorbs More Workers Than Foreign Investment

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