Investment Realization Reaches 48.7 Percent Of Target Rp1,200 Trillion, Bahlil: The Largest Growth In The Second Quarter In History

Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia. (Photo: Doc. Antara/Ministry of Investment/BKPM)

JAKARTA - The Ministry of Investment / Investment Coordinating Board (BKPM) recorded that investment realization during April-June (quarter II) in 2022 reached Rp. 302.2 trillion. This achievement grew by 35.5 percent compared to the achievement in the same period in the previous year of Rp223.0 trillion (yoy).

This achievement also recorded a growth of 7.0 percent compared to the previous quarter's achievement of Rp.282.4 trillion (q on q) with a total employment of 320,534 people.

"This may be the first time in history to grow this much," the Minister of Investment/Head of BKPM Bahlil Lahadalia told a press conference in a hybrid manner, quoted by Antara, Wednesday, July 20.

In detail, the realization of investment for the second quarter of 2022 consists of Domestic Investment (PMDN) of Rp. 139.0 trillion, growing 30.8 percent yoy, and Foreign Investment of Rp. 163.2 trillion, or growing 39.7 percent yoy.

In proportion, PMA reaches 54 percent of the total investment realization while PMDN occupies 46 percent. "In the midst of global uncertainty, Indonesia is still trusted as one of the investment destination countries," he said.

According to Bahlil, there are a number of factors that support Indonesia as an investment destination, namely investor confidence in President Jokowi's leadership, trust in political stability, improved legal processes and better transparency of service acceleration.

"This is a manifestation of our success in implementing the Job Creation Act," he said.

Based on project locations, the realization of investment in the second quarter of 2022 is spread across West Java, DKI Jakarta, Central Sulawesi, East Java and Riau.

As for the distribution of the sectors, namely the basic metal industry, metal goods, non-machinery and equipment; mining; housing, industrial and office areas; transportation, warehouse and telecommunications; and the food industry.

Cumulatively, investment realization in Semester I 2022 reached IDR 584.6 trillion, or 48.7 percent of the target set by President Jokowi of IDR 1,200 trillion.

During January-June 2022, the realization of PMA reached IDR 310.4 trillion (53.1 percent) and the realization of PMDN reached IDR 274.2 trillion (46.9 percent). Most investment projects are spread in West Java, DKI Jakarta, East Java, Central Sulawesi and Riau.

Investment realization in Semester I 2022 is spread across the basic metal, metal goods, non-machinery and equipment industrial sectors; mining, transportation, warehouse and telecommunications; housing, industrial and office areas; and the food industry.

Singapore, China, Hong Kong, Japan and the United States were listed as the top five countries that invested the most in Indonesia during Semester I 2022.