Rosan Calls Growing Investment Influenced By Consistent Downstream Policy

Investment Minister Rosan Roeslani (Photo: Antara)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Rosan Roeslani stated that investment realization continues to grow. In addition, Indonesia continues to consistently carry out downstreaming in order to increase added value and national economic competitiveness.

"The investment realization performance in the third quarter of 2024 is strongly influenced by downstreaming policies that are carried out consistently by the government," said Rosan Antara.

He said that this was in line with the projection of the World Bank which estimates that Indonesia's economic growth will be in the range of 5.0 percent in 2024, investment realization shows a positive trend.

According to him, downstreaming is the key to investment growth because it can increase added value and job creation.

"Hilirization plays an important role in increasing investment in Indonesia. Most importantly, this downstreaming allows us to have products with added value and create jobs," said Rosan.

He said, throughout the third quarter of 2024, the Ministry of Investment/BKPM recorded an investment realization of IDR 431.48 trillion, an increase of 15.24 percent compared to the same period the previous year, with the downstream sector contributing IDR 91.51 trillion or 21.2 percent of the total quarter realization.

This realization figure not only contributes to the fulfillment of 26.15 percent of the total investment target by 2024, but also becomes a forum for Indonesian employment of 650,172 people.

"We see that this (hilirization) figure is quite consistent, both quarterly, annual, and five-yearly, always above 20 percent. This shows that the downstream policy implemented by President Joko Widodo has had a very positive impact," said Rosan.

Domestic Investment Realization (PMDN) in the third quarter increased 11.62 percent compared to the previous year, from IDR 178.20 trillion to IDR 198.83 trillion.

Meanwhile, Foreign Investment (PMA) rose 18.55 percent from Rp196.20 trillion to Rp232.65 trillion, with the contribution of PMA reaching 53.92 percent of the total investment.

The top five PMA countries are Singapore (USD 5.50 billion), Hong Kong (USD 2.24 billion), China (1.86 billion US dollars), Malaysia (USD 0.99 billion), and the United States (USD 0.84 billion).

Berdasarkan sektor usaha, investasi terbesar berasal dari sektor Transportasi, Gudang, dan Telekomunikasi (Rp58,04 triliun), diikuti oleh Industri Logam Basar (Rp55,87 triliun), Pertambangan (Rp44,64 triliun), Industri Kimia dan Farmasi (Rp31,61 triliun), serta Industri Makanan (Rp31,30 triliun).

Furthermore, Rosan said that in line with strong achievements in the third quarter, the realization of cumulative investment during the January 'September 2024 period also showed positive performance.

This achievement is an indication that Indonesia is on the right track to achieve the investment target by the end of 2024.

He said that with the realization that had been achieved in the first nine months, optimism that the target could be exceeded was getting stronger.

"Realization has reached Rp1.261 trillion, an increase of almost 20 percent yoy. The year-end target of Rp1,650 trillion has reached 76.4 percent. In fact, if we talk about the strategic plan (Strategic Plan) target, it has exceeded," said Rosan.

Just like the third quarter, the January-September 2024 period was also influenced by the downstream sector which contributed Rp272.91 trillion or 21.6 percent of the total investment.

In that period, investment outside Java reached IDR 635 trillion (50.34 percent), an increase of 16.34 percent compared to IDR 545.81 trillion in the same period in 2023.

Rosan added, if withdrawn further, during the 10 years of President Jokowi's administration, investment realization reached Rp9,117.4 trillion, with employment reaching 13,836,775 people.

This figure exceeds the target of the Strategic Plan (Renstra) of the Ministry of Investment/BKPM since 2021, showing the success of the policies implemented in creating a conducive investment climate.

In the last 10 years, economic and political stability has increased investor confidence to invest in Indonesia. Investment is a long-term commitment, so stability is very important," said Rosan.

The manufacturing sector also continues to be an important pillar in economic growth. Over the past decade, this sector has experienced significant developments.

This shows the strategic role of manufacturing as a driving force for the national economy. In the future, focus will continue to be directed to strengthen this sector so that its contribution to investment and job creation will increase.

"Manufacturing growth has reached 15.5 percent over the past 10 years. This sector has a fairly high growth and needs to be pushed forward," said Rosan.