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Sabtu, 13 Mei 2023

Gave a Keynote Speech in Jeddah, Bahlil Invited All Islamic Countries to Participate in Down Streaming in Indonesia

Jeddah, May 13th, 2023 - Minister of Investment/Chairman of the Investment Coordinating Board (BKPM) Bahlil Lahadalia, was appointed as the keynote speaker at the Annual Meetings of the Islamic Development Bank Group (IsDB) at the session of The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) Outlook on Food Security, Green Economy, Tourism and FDIs in Member Countries in Jeddah, yesterday morning local time (12/5).

The Minister of Investment explained that the direction of Indonesia's investment policy under the leadership of Mr. Joko Widodo focused on downstream-oriented green energy and green industry. Indonesia has currently halted exports in several raw material commodities such as nickel, then this year it will again be carried out for tin and bauxite. The cessation of exports of raw materials is a manifestation of the Indonesian government's commitment to realizing downstream industry.

"We are now more focused on the down streaming of our natural resource commodities. Before the stoppage of nickel exports, our revenue was only US$3.3 billion. But once nickel exports are stopped and downstream is carried out, our revenue from nickel will reach US$30 billion," said Bahlil.

Indonesia is one of the countries with the highest economic growth among the G20 countries, namely 5.31% with an inflation rate that can still be kept below 6%. This economic growth figure still has the opportunity to continue to be improved, in line with consistent down streaming policy in Indonesia. Bahlil regretted that of the large number of investments coming into Indonesia, the average investment coming from Islamic countries over the last five years was only 5.5% of the total Foreign Direct Investment (FDI) entering Indonesia.

"There are facts that are counter-productive ladies and gentlemen. On the one hand, we are talking about the cohesiveness of Muslim countries, but on the other hand, as the largest Muslim country in the world, Indonesia has been flooded with investments, but unfortunately not from Islamic countries. Indonesia is a country with enormous potential. In the future, we will build an electric vehicle battery ecosystem in Indonesia. Twenty-five percent of the world's nickel reserves are in Indonesia and we continue to push downstream towards developed countries. Therefore, I offer every one to take part. We are aiming towards golden Indonesia in 2040. We already have a masterplan, an investment management design that leads to the down streaming of 8 leading commodity sectors with a potential value up to US$545.3 billion," Bahlil explained.

ISDB Group Private Sector Forum is one of the main pillars in the series of activities of the IsDB Group Annual Meeting. It was held to provide a unique network platform for leading partners and stakeholders, especially in the private sector. In addition, IsDB is also a forum for promoting investment and trade opportunities offered by its member countries.

Saudi Arabia's investment realization in the period 2018 to the first quarter of 2023 reached US$26.5 million, excluding investment in the financial sector and upstream oil and gas. The tertiary sector dominates with a total value of US$24.78 million or 94% with the highest achievement by the housing, industrial area, and office sector worth US$16.93 million or as much as 64% of the total investment value of Saudi Arabia in Indonesia. Bali Province became the main location for Saudi Arabia's investment realization with an achievement of US$10.3 million (39%), followed by West Java, East Java, Special Capital Region (DKI) Jakarta, and East Kalimantan in the last 5 years. Based on data from the Ministry of Trade, Indonesia's main export products to Saudi Arabia include cars/automobiles, palm oil, processed/preserved fish, sauces, and plywood. Meanwhile, Indonesia's main imports from Saudi Arabia include petroleum, crude oil, petroleum gas, acyclic alcohol, and ethylene polymer. (*)

For further information, please contact:

Ricky Kusmayadi

Head of Communication and Information Services Bureau

Ministry of Investment/BKPM


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