Lesu Investment, Bahlil: Rayu Investors When Pemily Is Not Easy

Investment Minister Bahlil Lahadalia (photo: between)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia admitted that it is not easy to seduce investors to invest in Indonesia when there is an annual five-year democratic party, the 2024 general election (Pemilu).

Bahlil said that the election made foreign investors hold back their investment plans in the country. Therefore, investment realization in 2023 is only able to reach Rp1,418.9 trillion or grow 17.5 percent on an annual basis or year on year (yoy).

In the midst of the turmoil in the 2024 General Election, domestic investment (PMDN) is also relied on to attract investment throughout 2023. See that the realization of PMDN investment increased to 22.1 percent on an annual basis to Rp674.9 trillion.

Furthermore, Bahlil admitted that there was a slowdown in the investment growth rate in 2023. This was due to foreign investment or PMA being only able to grow 13.5 percent on an annual basis to IDR 744 trillion.

"It must be admitted that this year's politics is not easy. This political year, oh my, our mouth is convinced that the person asks for forgiveness, must be various ways, not indifferent to theory," he said in a press conference, at the Office of the Ministry of Investment, written Thursday, January 25.

Bahlil said the slowdown in the investment growth rate was also caused by the basic calculation or baseline of investment growth in 2023 which was also greater than in 2022. However, the political year is the main factor causing the slowdown.

Although the growth rate has slowed, Bahlil said that the realization of the 2023 PMA investment shows that there is still confidence from foreign investors to invest in the country.

"To be honest, I can't cover it up. But there is trust and it is a challenge for us teams at the Ministry of Investment to remain sure that even though the year of climate politics, investment in the country remains clear (clear)," he said.

Based on data from the Ministry of Investment, investment realization throughout 2023 spread across five main sectors, namely the basic metal industry, metal goods, non-machinery and equipment amounting to Rp200.3 trillion. Then, transportation, warehouses and telecommunications amounted to Rp159.8 trillion.

Furthermore, mining amounted to IDR 156.5 trillion; the housing sector, industrial estates and offices amounted to IDR 115.2 trillion; and the chemical and pharmaceutical industry with a total investment realization of IDR 105 trillion.

Based on its location, West Java is the province with the largest PMA investment value in 2023, namely 8.3 billion US dollars or 16.5 percent. Meanwhile, the largest realization of PMDN investment is in the province of DKI Jakarta, reaching Rp95.2 trillion.