Investment Realization Reaches 48.5 Percent, UNCTAD Says Indonesia is in 17th Position in the World

Illustration of the Rupiah (Photo: Doc. Antara)

JAKARTA - The Ministry of Investment/Investment Coordinating Board (BKPM) noted that investment realization reached IDR 678.7 trillion or 48.5 percent of the total target for 2023 set by the President of the Republic of Indonesia Joko Widodo (Jokowi), namely IDR 1,400 trillion. . That way, this investment creates 850 thousand jobs.

Deputy for Investment Promotion at the Ministry of Investment (BKPM) Nurul Ichwan said that Indonesia is in 17th position in the world based on the World Investment Report 2023 by the United Nation Conference on Trade and Development (UNCTAD).

"We are preparing a downstream industry roadmap covering 21 potential commodities, including oil and gas, minerals, plantations and fisheries. The ban on nickel ore exports in 2020 (also) has encouraged investment in smelters and encouraged exports of steel, a material that continues to be developed, even to battery material," said Ichwan in an event entitled "Become a Navigator of Shifting Strategies in Volatile International Markets" in Jakarta, quoted on Sunday, September 10.

Ichwan said that the government has laid out six main strategies for economic transformation which include a green and low-carbon economy.

Meanwhile, Indonesia has just increased its decarbonization target in 2030 from 29 percent to 31.8 percent with its own capabilities or from 41 percent to 43.2 percent with international support.

"This shows the government's strong commitment to the issue of climate change and energy transition," he said.

On the other hand, said Ichwan, Indonesia has also set a road map towards zero carbon emissions by 2060. By 2030, the government is targeting 42 percent new and renewable energy (EBT) as well as the use of two million electric cars and 13 million electric motorbikes.

"Sustainability is no longer an option, but a necessity in current and future business development," he said.

Ichwan also said that currently the government is focusing on priority sectors, including downstream industry which adds value to natural resources.

Meanwhile, NH Korindo Sekuritas Head of Research Liza Camelia Suryanata said that the increase in the number of investors along with increased awareness of the company's credibility was the result of financial literacy and capital market outreach which was intensively carried out by the stock exchange authorities and members.

"Investors and traders are also becoming more aware of what is happening in global financial markets and are becoming more critical and able to respond to it, especially in a wise portfolio and risk management capacity," she said.