Bahlil Likens The Strategy To Pursue Investment Targets Like Juventus: Survive If Foreigners Come In, Attack If Foreigners Stop

Investment Minister Bahlil Lahadalia (Photo: Instagram @bahlillahadalia)

JAKARTA - Foreign Investment (PMA) entering Indonesia in the third quarter of 2021 recorded a decline. However, Domestic Investment (PMDN) actually grew significantly. Meanwhile, the realization of investment in the third quarter was only IDR 216.7 trillion, down 2.8 percent from the previous quarter.

The Minister of Investment/Head of BKPM Bahlil Lahadalia said that from the realization of investment of Rp. 216.7 trillion, 47.6 percent or Rp. 103.2 trillion was PMA. Meanwhile, 52.4 percent or Rp113.5 trillion is PMDN.

Furthermore, Bahlil said that FDI decreased in the third quarter of 2021 by 11 percent compared to the previous quarter. Meanwhile, year on year (yoy) fell 2.7 percent. This is because the flow of goods entering from abroad is also hampered by the COVID-19 pandemic.

"But what makes us most proud is when foreign direct investment fell 11 percent, but our domestic investment increased. So quarter to quarter (qtq) 6.8 percent compared to the second quarter, year on year (yoy) it increased by 10.3 percent. It means, actually we are like a theory that plays football like Juventus. In attracting investment in Indonesia, I always make an analogy like Juventus," he said in a virtual press conference, Wednesday, October 27.

Furthermore, Bahlil explained that the purpose of Juventus' strategy was to defend and attack. He said if at the time of the 'attack' foreign investment could not be carried out due to the COVID-19 pandemic, then what had to be done was to defend from within the country.

"We beat it domestically. We will continue to help push it. But once it's loose, we beat it again abroad. That's the position," Bahlil explained.

In detail, FDI in the third quarter was recorded at Rp103.2 trillion. This figure is down 11 percent when compared to the previous quarter. Meanwhile, on an annual basis or yoy, it fell 2.7 percent from Rp106.1 trillion.

Meanwhile, FDI in January-September was 50.3 percent or equivalent to Rp. 331.7 trillion of the total realization of Rp. 659.4 trillion. This number increased 9.9 percent from the previous year which amounted to Rp301.7 trillion.

Meanwhile, PMDN in the third quarter was recorded at Rp113.5 trillion, equivalent to 52.4 percent of the total investment realization in the third quarter. This figure is up 6.8 percent from the previous quarter. Meanwhile, on an annual basis or yoy, it rose 10.3 percent from Rp102.9 trillion in 2020.

PMDN realization in January-September amounted to Rp327.7 trillion. This figure is equivalent to 49.7 percent of the total realization of Rp. 659.4 trillion. This number increased by 5.8 percent from the previous year which amounted to Rp309.9 trillion.