Investment Soars, Job Absorption Remains Relatively Stable

Employment

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Cindy Mutia Annur 27/04/2022 15:40 WIB

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Investment in Indonesia created 319,013 jobs in the first quarter of 2022. This represents an increase of approximately 2.3% compared to the same period last year.

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

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

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The Indonesian Investment Coordinating Board (BKPM) reported that Indonesia's investment realization reached Rp282.4 trillion in Q1 2022.

This figure grew by 28.5% year-on-year (yoy) and is the highest record in the last 10 years.

However, this record growth has not been accompanied by a surge in job absorption.

According to the BKPM report, in Q1 2022, job absorption from new investment only grew by 2.3% (yoy), far below the 28.5% (yoy) growth rate of investment realization.

In terms of numbers, total job absorption from investment has remained relatively stable since the end of 2019, at around 300,000 workers per quarter, as shown in the graph.

Up to Q1 2022, the total number of workers was still around 319,000, even though investment realization had reached a record high.

During the first three months of 2022, the highest job absorption came from Domestic Investment (PMDN), namely around 190,700 workers. Meanwhile, job absorption from Foreign Investment (PMA) amounted to 128,200 workers.

The largest investment realization in this period went to the basic metal industry, non-machinery metal goods, and equipment sector, reaching Rp39.7 trillion.

The next largest recipient of investment was the transportation, warehousing, and telecommunications sector, valued at Rp39.5 trillion.

The region with the largest investment absorption in Q1 2022 was DKI Jakarta, at Rp40.4 trillion, followed by West Java at Rp39.5 trillion and Riau at Rp23.7 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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Investment Soars, Job Absorption Remains Relatively Stable

Investment Soars, Job Absorption Remains Relatively Stable

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