Indonesia's Largest Investor Country: Here's The List

Indonesia's Largest Investor Country ( Image Christian Dubovan - Unsplash)

YOGYAKARTA - The Ministry of Investment (Kemenves) / Investment Coordinating Board (BKPM) noted that investment realization during 2022 reached IDR 1. 207, 2 trillion, an increase of 34 percent compared to IDR 901, 02 trillion in the following year. There are the 5 largest investor countries that invest in Indonesia, namely Singapore, the People's Republic of China (RRT), Hong Kong, Japan, and Malaysia.

At first, Singapore. Minister of Investment and Head of BKPM Bahlil Lahadalia said that the total realization that entered the country reached 13, 3 billion US dollars or equivalent to Rp. 198.08 trillion in 2022. On the other hand, Indonesia needs to learn from Singapore because it is the ideal country for investors because it has good regulations.

"But to be honest in that context Singapore has already been and we must be motivated to learn from them. Singapore has become a hub and the regulations are very good. Singapore is the first country in the ASEAN region with the most foreign capital flows. Most importantly for the financial zone, Singapore is far superior to Indonesia. In Singapore, the special financial zone is very fast, "explained Bahlil at the Press Conference, at the Ministry of Investment/BKPM,(24/1).

At least, Indonesia wants to explore Singapore's footprint. One of the efforts is being tried by making a legal umbrella for Law (Law) No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK).

"So we will make flexible provisions to attract the attention of large investors to enter IKN (National Capital of the Archipelago)," said Bahlil.

Second, RRT. Investment realization during 2022 won IDR 8, 2 billion US dollars. In the fourth quarter of 2022, RRT's investment in Indonesia faced an increase of 3 billion US dollars, this was for him to have shifted the role of Singapore as the largest investor country.

"China (RRT) this time is the fourth most. But if it is cumulative (January-December 2022) it will always be Singapore," said Bahlil.

Third, Hong Kong, with investment realization during 2022 of 5.5 billion US dollars. Fourth, Japan with investment realization to Indonesia worth 3.6 billion US dollars in the following year.

Fifth, the next largest investor country in Indonesia in 2022 is Malaysia. There is also an investment value of 4.2 billion US dollars or equivalent to Rp 62.82 trillion. Bahlil said, even though it is included in the 5 most countries, it does not mean that Malaysian money is more than Indonesia. Because currently Malaysia is the country of hubs, such as Singapore or South Korea.

"Don't be fooled, he (Matria) is a hub for investment from South Korea. Most of the investments entering from Malaysia come from South Korea. In 2022, Lotte will complete a stalled investment in Banten. So, this is the result of Lotte's investment. Lotte (the investment) is 4.2 billion US dollars. Later there will be the most petrochemical factories in ASEAN, which used to have stalled investment for 5-6 years, "said Bahlil.

He emphasized that the Indonesian government does not provide red carpets for certain national investors. The Indonesian government will treat investors from any country.

"So, don't talk about this, we make a red carpet for certain countries. The country from heaven too if it matches Indonesian provisions, we will treat it the same," said Bahlil.

Not only that, the Ministry of Investment/BKPM said, Domestic Investment (PMDN) during 2022 amounted to Rp 552, 8 trillion or 45, 8 percent, while Foreign Investment (PMA) was Rp 654, 4 trillion or 54, 2 percent.

In the midst of global economic darkness, PMA entering Indonesia still develops 44, 2 percent. This is a belief that must be recognized if the growth of PMA is the result of government policies and all of them want to give birth to confidence for investors entering Indonesia," said Bahlil.

After that, investment outside Java is IDR 636, 3 trillion or 52.7 percent, while in Java it is IDR 570.9 trillion or 47.3 percent.

For Bahlil, the positive investment performance during 2022 is the domino impact of Law No. 11 of 2020 concerning Job Creation (Ciptaker Law). Thanks to the Ciptaker Law, foreign investors or investors in the country can be given convenience, thus having implications for increasing labor absorption and economic developments. In 2022, the number of workers absorbed was 1,305,001 people. This figure grew by 8, 03 percent when compared to employment during 2021 as many as 1, 207, 893 workers.

"So if someone says what are the benefits of the Ciptaker Law, sorry boss, if there is no law, how can we have a development target that can be achieved. How can the realization of this investment. How can we hold jobs," said Bahlil.

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