Foreign Investment Increases 16.2 Percent to Reach IDR 196.2 Trillion in Quarter III-2023

Investment Minister Bahlil Lahadalia (Photo: dock. VOI)

JAKARTA - The Ministry of Investment/Investment Coordinating Board (BKPM) recorded that the realization of foreign investment (PMA) reached IDR 196.2 trillion in the third quarter of 2023. This figure grew 16.2% compared to the third quarter of 2022 of IDR 168.9 trillion.

Minister of Investment/Head of BKPM Bahlil Lahadalia said that PMA realization in the third quarter of 2023 contributed the most, namely 52.4% of the total investment realization in the third quarter of 2023 amounting to IDR 374.4 trillion.

In the third quarter of 2023, the sectors that are of interest to FDI are the Basic Metal Industry, Metal Products, Non-Machines and Equipment with US$3.3 billion, Chemical and Pharmaceutical Industry USD 1.3 billion, Mining US$1.3 billion, Paper Industry and Printing 1.2 billion US dollars, Transportation, Warehouse and Telecommunications 1.1 billion US dollars.

Regionally, West Java, Central Sulawesi and North Maluku are listed as the favorite provinces for FDI destinations with investment realization of 1.8 billion US dollars. Next are Banten and DKI Jakarta with realized PMA of US $ 1.2 billion and USD 1.1 billion respectively.

Bahlil said that the largest realization of PMA investment came from Singapore amounting to 4.4 billion US dollars, China 1.8 billion US dollars, Hong Kong 1.7 billion US dollars, Japan 1.3 billion US dollars and Malaysia 900 million US dollars.

According to Bahlil, even though Singapore is the country of origin with the largest number of foreign investment investments, the average investment value comes from Indonesians.

Bahlil added that if the value of PMA investment from Singapore is included in Domestic Investment (PMDN), then the realized value of PMDN investment will be much higher than PMA.

"If part of Indonesia's money comes from Singapore into PMDN, then PMDN is actually higher than PMA. So actually our domestic resources are strong," he explained.

For information, domestic investment (PMDN) amounted to IDR 178.2.5 trillion (47.6 percent), growing 28.2 percent yoy and 7 percent qoq.