Sri Mulyani Says Investment Has Doubled Since The First Quarter Of 2020

Minister of Finance (Menkeu) Sri Mulyani Indrawati said that investment realization in Indonesia is still strong, with the number of Domestic Investment (PMDN) and Foreign Investment (PMA) increasing more than double since the first quarter of 2020.

"This has more than doubled, especially in the post-COVID crisis period. So, this has been doubling in the last 3-4 years," said Sri Mulyani Indrawati quoting Antara.

The Minister of Finance said that the realization of investment per quarter increased from IDR 211 trillion in the first quarter of 2020 to IDR 428 trillion in the second quarter of 2024.

He also noted that investment growth was relatively constant in the range of 4.4 percent year-on-year (yoy).

"But, of course, this can be accelerated to create higher growth," he said.

Not only PMA and PMDN, investment growth is also supported by bank credit for business activities.

As of June 2024, investment credit increased 11.5 percent yoy, while working capital loans grew 10.9 percent yoy. Meanwhile, total bank credit grew 11.5 percent yoy.

"The double-digit growth of the banking sector as well as from PMA and PMDN creates capital that is embedded and causes economic growth," said Sri Mulyani again.

Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that the Ministry of Investment/BKPM received an investment target of IDR 1,850 trillion to IDR 1,900 trillion, as stated in the 2025 Government Work Plan (RKP).

This amount increased from the investment target this year set by President Joko Widodo of IDR 1,650 trillion.

Meanwhile, based on the strategic plan (restra) of the Ministry of Investment/BKPM, investment realization throughout 2024 is targeted at IDR 1,239.3 trillion.