Investment In Indonesia Grows 3.1 Percent In The Fourth Quarter Of 2020, These Are 5 Potential Sectors In The Next Year

Illustrated. (Irfan Meidianto / VOI)

JAKARTA - Realization of investment that entered Indonesia in the fourth quarter of 2020 has increased compared to the previous quarter with investment achievements of Rp.214.7 trillion. This was conveyed by the Head of the Investment Coordinating Board (BKPM) Bahlil Lahadilia in an online press conference, Monday, January 25.

"The investment realization rose 2.7 percent on a quarter to quarter (QtoQ) basis and up 3.1 percent year on year (YoY) or on an annual basis," said Bahlil.

This achievement certainly provides fresh air for investors who want to invest in Indonesia. So, which sectors have the potential to invest in 2021?

Responding to this, Bank Mandiri's Treasury & International Director Panji Irawan said there were five sectors that could raise investment this year, including the infrastructure, health, education, communications, and manufacturing sectors.

The five sectors, continued Panji, are in line with lifestyle needs and trends due to the COVID-19 pandemic. According to him, in 2021, economic conditions in Indonesia will move from the survival phase to recovery. This cannot be separated from the COVID-19 vaccination program and the implementation of the Job Creation Law.

"The infrastructure sector is sustainable, because our country has a population of over 260 million. People are very mobile between islands and within islands. This really requires infrastructure to go to a country that is more than middle income," said Panji in a virtual press conference for the Mandiri Investment Forum (MIF. ) 2021, Monday 25 January.

Apart from that, the health sector is also very interesting to look at this year. The health sector includes the pharmaceutical industry, health care, and other health related efforts to overcome a pandemic.

The third sector that is also potential is the education sector, given that during the COVID-19 pandemic the trend shifted from face-to-face meetings at schools to online. This situation,  called Panji, is to encourage investment in the education sector.

Even so with the communications sector. This sector can also raise investment, because all activities are carried out virtually and require an internet network, telecommunications equipment and other supporting networks.

The last sector that will have a positive impact on investment is the manufacturing sector which is affected by trade agreements such as automotive and electronics.

In previous VOI reports, President Joko Widodo himself targeted investment to reach Rp. 900 trillion by the end of 2021. With such a target, BPKM must at least increase investment by 8.95 percent from the 2020 realization of Rp. 826.3 trillion.