Indonesia Is Considered To Remain Interesting For Foreign Investors Amid The Transition Of Government Leadership

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JAKARTA - Indonesia continues to attract foreign investors to invest in government projects amid the transition of government leadership, according to a report by Grant waste Indonesia regarding Indonesia's economic prospects in 2024.

In his report launched in Jakarta, quoted from Antara, Thursday, March 28, it was stated that even though the change in leadership of President Joko Widodo caused a wait and see' attitude among several investors, Indonesia could still attract foreign investors.

Government infrastructure projects, the development of the capital city of the archipelago (IKN), and business-friendly policies are said to increase the interest of foreign investors in Indonesia.

This report also underlines the surge in domestic consumption, with Indonesia's strong GDP growth projection of between 5.3'5.7 percent, driven by a wave of spending triggered by the 2024 election and a rapidly growing middle class boost.

Then, there is an increase in investment trends amidst global economic pressures, with the Indonesian investment sector showing promising prospects, especially in government infrastructure projects and the development of the capital city of the archipelago (IKN).

This report states that the metal, mining, and transportation sectors including warehousing and telecommunications will likely also be a major attraction for investors by 2024. This is supported by government policies to encourage the development of a stronger downstream industry.

The report also discusses the new nickel era in Indonesia, where the mining sector, particularly nickel, promises bright investment opportunities in line with the electric vehicle revolution (EV). This report states that the prospect of direct foreign investment (FDI) in 2024 shows optimism with an estimated FDI value of around 55 billion US dollars or approximately Rp.873.96 trillion, higher than 2023, which was recorded at US$ 50 billion (Rp794.51 trillion).

The report also discusses five provinces that are expected to be the center of attention of investors in 2024, namely North Maluku, Central Sulawesi, East Kalimantan, West Java, and Riau.

Each province is considered to have a unique and promising economic landscape, and offers various investment opportunities in Indonesia.

North Maluku, for example, known as its now-developed nickel industry, is a key player in the global market.

Meanwhile, Central Sulawesi stands out with strategically sustainable agribusiness practices, increasing resilience and growth. Meanwhile, East Kalimantan, with the IKN project, promised strong economic growth.

West Java Province, which is Indonesia's manufacturing center, is expected to continue to attract investors with superior manufacturing expertise and potential in the electric vehicle industry.

Riau, known as the largest crude palm oil (CPO) producer in Indonesia, is also considered to have promising potential.

Apart from palm oil, another important commodity for Riau is oil. Riau Province is the largest oil producer in Indonesia. The export value of Riau oil was recorded at 384.1 billion US dollars in 2020, increasing again to 586.2 billion US dollars in 2021 and surging to 1,420.2 billion US dollars in 2022.