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Jumat, 28 April 2023

Investment Realization Grows 16.5%, Ministry of Investment Showcases Optimism in 2023

Jakarta, April 28, 2023 – The Ministry of Investment/Indonesia Investment Coordinating Board (BKPM) released investment realization data for the January-March (quarter I) 2023 period of IDR328.9 trillion, an increase of 16.5% compared to the same period in 2022 and engages Indonesian workers (TKI) as many as 384,892 people. The Ministry of Investment/BKPM remains positive about Indonesia’s economic growth, as the investment realization in the first quarter of 2023 reached 23.5% of the 2023 investment realization target of IDR 1,400 trillion.


"Seeing investment growth in the first quarter of 2023 which reached 16.5%, I am optimistic that Indonesia's economic growth can reach around 5%. The investment will remain an important contributor to economic growth, even though it is predicted to slow down globally in 2023. Confidence for the 2023 economy will be good if we are able to maintain momentum," said Minister of Investment/Chairman of BKPM Bahlil Lahadalia in a press conference held this afternoon (28/4) at the office of the Ministry of Investment/BKPM.


In his presentation, Bahlil explained further about the contribution of Foreign Direct Investment (FDI/PMA), which in the first quarter of 2023 reached IDR177.0 trillion or 53.8%, surpassing Domestic Direct Investment (DDI/PMDN) of IDR151.9 trillion or 46.2% of investment realization of this period. Bahlil believes that the level of trust from the international business community in Indonesia is still excellent and the FDI has even shown an increase of 20.2% compared to the same period in the previous year.


"We continue to oversee investments in strategic sectors that provide added value, such as mineral resources downstream. In the first quarter of 2023, the FDI realization in the manufacturing sector, especially the metal industry, ranks first with total investment reaching USD2.9 billion. This achievement demonstrates that government policy of natural resource downstream program has delivered a positive impact on the achievement of investment performance in 2023," Bahlil explained.

 

The distribution of investment realization outside Java Island in the first quarter of 2023 continued to dominate with a contribution of IDR172.9 trillion or 52.6% of the total investment realization achievements. This figure has increased by 16.3% from the same period in 2022. As for the highest total investment realization, it is still held by the province of West Java with IDR50.0 trillion, followed by the Special Capital Region (DKI) of Jakarta, East Java, Central Sulawesi, and Banten.


Specifically for the achievement of FDI realization, the province of Central Sulawesi again managed to become as the location with the highest FDI realization of USD1.9 billion, followed by West Java, DKI Jakarta, Banten, and Riau. Meanwhile, for DDI realization, West Java province recorded the highest realization of IDR21.9 trillion, followed by DKI Jakarta, East Java, East Kalimantan, and Riau.


Bahlil added, "The distribution of investment outside Java can be seen here. Central Sulawesi is the highest and Riau is included in the top 5 FDI ​​locations, then in the top 5 DDI locations are East Kalimantan and Riau. The Ministry of Investment continues to boost quality investment growth that is Indonesia-centric. We encourage the creation of new economic zones."

 

Based on the business sector, in the first quarter of 2023, the five major investment realizations came from the basic metal, metal goods, non-machinery, and equipment industrial sector, amounting to IDR46.7 trillion; followed by the transportation, warehouse, and telecommunications sector amounting to IDR36.1 trillion; mining sector of IDR33.5 trillion; the housing, industrial and office areas sector of IDR27.9 trillion; as well as the chemical and pharmaceutical industry sector amounting to IDR22.6 trillion. Overall, the manufacturing industry sector contributed 42.5% of the total investment realization in the first quarter of 2023.

 

Throughout 2022 until the first quarter of 2023, the manufacturing industry sector, such as the basic metal, metal goods, non-machinery, and equipment industries, has consistently ranked as the largest contributing sector to Indonesia's investment. It validates the government's policy strategy that focuses on downstream consistently able to become the largest contributor to Indonesia’s investment realization.

 

Meanwhile, based on country of origin, investment realization in the first quarter of 2023 was dominated by Singapore amounting to USD4.3 billion; followed by Hong Kong, PRC with USD1.5 billion; then the People's Republic of China (PRC) USD1.2 billion; Japan at USD1.,0 billion; and the United States of USD0.8 billion. (*)


 


Progress of Investment Realization 2019 – 2023: Quarterly

 

For further information, please contact:

Ricky Kusmayadi

Head of Communication and Information Services Bureau

The Ministry of Investment/BKPM

E-mail: rickykusmayadi@bkpm.go.id


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