Manufacturing Sector Becomes ASEAN Investment's Largest Contributor In Indonesia In The Last 4 Years

Illustration. (Photo: Doc. Antara)

JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) noted that the manufacturing sector is the largest contributor to ASEAN investment in Indonesia in 2018-2022, outside the upstream oil and gas sector and financial services.

"This is mainly from three ASEAN countries that have the largest investment in Indonesia," said Deputy for Investment Promotion at the Ministry of Investment/BKPM Nurul Ichwan at the HSBC ASEAN Day event, in Jakarta, quoted from Antara, Tuesday, April 11.

The three countries were Singapore with a total investment of 48.2 billion US dollars in that period, Malaysia 8.9 billion US dollars, and Thailand 1.51 billion US dollars.

Nurul explained, there are five main sectors that are Singapore's investment destinations in Indonesia, namely the steel industry worth 8.63 billion US dollars, real estate 7.09 billion US dollars, transportation and storage of 6.04 billion US dollars, the food industry 4.2 billion US dollars, and mining 4.18 billion US dollars.

For Malaysia, the transportation and storage sector is 2.94 billion US dollars, the chemical industry 2.16 billion US dollars, the food industry 1.2 billion US dollars, plantations and livestock 720 million US dollars, and the paper industry 316 million US dollars.

Then, the five main sectors that became Thailand's investment destination in the country, namely the chemical industry amounting to USD 882 million, the rubber industry USD 175 million, mining USD 143 million, the food industry 85 million US dollars, and trade and repair of USD 70 million.

Thus, he said the secondary sector was a contributor to ASEAN's investment in Indonesia, which was 43 percent of total investment ($24.93 billion). The secondary sector is a sector that processes raw materials from the primary sector and the secondary sector into other goods with higher value, for example the manufacturing sector.

Meanwhile, the primary sector (does not process raw materials, but only utilizes natural sources such as land and everything contained in it, for example mining) accounts for 16 percent or 9.43 billion US dollars.

The tertiary sector (production is not in physical form, but in the form of services, for example the trade sector) accounts for 41 percent or 23.52 billion US dollars.