Second Quarter 2018, Foreign Investment in Indonesia Absorbs 156,000 Workers

The inflow of Foreign Direct Investment (FDI) has resulted in the influx of foreign workers (TKA) into Indonesia. This is partly due to the fact that new investments bring new technologies that cannot yet be handled by the local workforce, both as experts and operators, as seen in the Morowali industrial area, Central Sulawesi.

The Investment Coordinating Board (BKPM) recorded that the inflow of Foreign Investment (PMA) in the second quarter of 2018, valued at Rp 204.6 trillion, absorbed 156,241 workers. Meanwhile, Domestic Investment (PMDN) of Rp 157 trillion created jobs for 133,602 people. In total, direct investment in the first quarter of this year absorbed 289,843 workers.

Cumulatively, during the first half of this year, direct investment in Indonesia absorbed 491,082 workers. This figure comprises 253,498 workers from foreign investment and 237,584 workers from domestic investment. For information, until the end of March 2018, the number of foreign workers in Indonesia reached 89,784, while the number of Indonesian workers working in Malaysia reached 728,000. Therefore, the number of foreign workers in Indonesia is still quite small compared to the 1.78 million foreign workers in Malaysia.