Hong Kong Investment in Indonesia Grows, Bypassing China

Investment from Hong Kong to Indonesia has significantly increased over the past three years.

According to a report by the Indonesian Investment Coordinating Board (BKPM), Foreign Direct Investment (FDI) from Hong Kong to Indonesia in 2021 reached US$4.6 billion, contributing 14.8%.

This figure surpasses the value of Chinese investment in Indonesia in 2021, which amounted to US$3.2 billion, with a contribution rate of 10.2%.

Hong Kong Investment Increased Since 2019

The increase in investment from Hong Kong is evident since 2019, when investment totaled US$2.9 billion, a 45% increase from the previous year.

Then, in 2020, Hong Kong's investment rose again to US$3.5 billion and continued to increase until 2021, as shown in the graph.

Indonesia's total realized investment in 2021 amounted to US$62 billion or approximately Rp901 trillion. This value increased by 9% from the previous year, which was Rp826.3 trillion.

Indonesia's realized investment in 2021 was dominated by Domestic Direct Investment (PMDN) at Rp447 trillion, while FDI reached Rp454 trillion.

(Also Read: Not China, Singapore is the Largest Investor in Indonesia in 2021)