Bahlil Optimistic Investment Target Of IDR 1,650 Trillion Achieved In 2024

Investment Minister Bahlil Lahadalia (Photo: Antara)

JAKARTA - Investment Minister/Head of BKPM Bahlil Lahadalia said he was optimistic that the investment target of IDR 1,650 trillion, which President Joko Widodo (Jokowi) installed was targeted. Although, the current global situation is being colored by conflict and uncertainty.

However, Bahlil said to realize the investment realization target, the government must maintain political stability and legal certainty for the business world.

"How optimistic is that our investment can be realized Rp1,650 trillion, I pray for God willing. The important thing is political stability, we can protect legal certainty," Bahlil said at a press conference at the Ministry of Investment Office, Jakarta, Monday, April 29.

The realization of investment in the first quarter of 2024 has reached IDR 401.5 trillion. This figure is equivalent to 24.3 percent of the target set by President Jokowi of IDR 1,650 trillion.

Bahlil said that the investment target set by President Jokowi in 2024 is the highest figure in Indonesia's history. In fact, it is much higher than the one set in the RPJM, which is Rp. 1,239.3 trillion.

"The realization of our investment in the first quarter was IDR 401.5 trillion. It grew QoQ compared to the 2023 IV quarter-year growth of around 9.8 percent. And compared to the first half of 2023 year on year it grew 22.1 percent," he explained.

Furthermore, Bahlil said that this achievement was only 32.4 percent of the strategic plan target (restra) in 2024, which was IDR 1,239.3 trillion.

"But if we want to withdraw from the president's (target) now the realization has reached 24.3 percent. So from the target of IDR 1,650 trillion, it has reached 24.3 percent," he said.

The details, continued Bahlil, are the realization of foreign investment (PMA) of Rp. 204.4 trillion, or grew 15.5 percent yoy. He said, PMA was still the largest contributor to investment realization in the January to March period this year with a contribution of 50.9 percent.

"Imagine the world in uncertain economic conditions, there is no certainty, but our foreign direct investment is still maintained," he continued.

Bahlil said the realization of domestic investment (PMDN) was IDR 197.1 trillion, or grew to 29.7 percent on an annual basis (yoy). PMDN itself contributed 49.1 percent to the total investment realization.

The realization of investment outside Java reached IDR 201.0 trillion or equivalent to 50.1 percent. Meanwhile, the realization of Java's investment reached IDR 200.5 trillion or the equivalent of 49.9 percent of the total investment realization.