Even Though The Realization Of Investment In The Third Quarter Fell By 2.8 Percent To IDR 216.7 Trillion, Bahlil Is Optimistic That Jokowi's IDR 900 Trillion Target Will Be Achieved

Investment Minister Bahlil Lahadalia (Screenshot of the Ministry of Investment press conference)

JAKARTA - The Ministry of Investment / Investment Coordinating Board (BKPM) reported the realization in the third quarter of 2021. It was noted that the capital that entered Indonesia in the third quarter reached IDR 216.7 trillion. This achievement decreased when compared to the second quarter.

Investment Minister/Head of BKPM Bahlil Lahadalia said the realization of the investment decreased by 2.8 percent compared to the previous quarter. According to him, this is because the business world has been hit by the delta variant of the COVID-19 pandemic since last August.

"In the third quarter, our realization was IDR 216.7 trillion, quarter to quarter compared to the second quarter, it fell 2.8 percent. This is more because during the last three months we were able to work a maximum of 1.5 months, while for the other 1.5 months we know the pandemic COVID-19 is increasing but we are still working," he said at a virtual press conference in Jakarta, Wednesday, October 27.

According to Bahlil, the third quarter of this year is the government's toughest time in pursuing investment targets. Moreover, President Joko Widodo (Jokowi) has set an investment target invested in Indonesia throughout the year to reach IDR 900 trillion.

Even so, Bahlil said he was optimistic that he could achieve the investment target. Not only that, he said that all the best teams in the ministry had also been deployed in the field to directly oversee the investment realization process.

"We oversee the company end to end, we send a team to the field, but the result is that the investment realization year on year compared to the third quarter of 2020 grew by 3.7 percent," he said.

Bahlil said that the COVID-19 pandemic that has been going on since 2020 has also affected foreign direct investment (FDI) to Indonesia. On a quarterly basis, the number of FDI in the third quarter fell drastically by 11 percent.

However, said Bahlil, for direct employment, it is able to absorb as many as 288.687 workers. On the other hand, he claims that the absorption of indirect workers can reach four to five times as much.

"So this data reflects that even though the pandemic may be because entrepreneurs and investors have been able to adapt to the COVID-19 conditions, they are still confident in building their investments," he explained.