The Indonesian government has revealed that the country has received IDR 328.9 trillion (USD 22.4 billion) in investment in the first quarter (Q1) of 2023. Indonesia targets to attract USD 94.5 billion in investment in 2023. The country has presently met 23.5% of its 2023 objective. During the first quarter of 2023, 384,892 jobs were created due to the investment that the country secured.
From January through March 2023, domestic investment totaled USD 10.2 billion. Over the same period, foreign direct investment (FDI) accounted for 53.8% of total investment, totaling USD 11.9 billion. According to government statistics, Singapore emerged as Indonesia’s top foreign investor in the first three months of 2023, totaling USD 4.3 billion. Following in the ranking are Hong Kong (USD 1.5 billion) and China (USD 1.2 billion). Japan ranks fourth with USD 1 billion. American companies invested USD 800 million in Indonesia, placing the United States in fifth position.
According to the Investment Minister, Central Sulawesi is the province with the most foreign investors since it hosts downstream nickel businesses. FDI in Central Sulawesi was roughly USD 1.9 billion, accounting for 16.3% of total foreign investment in the nation in Q1-2023. Domestic investors favored West Java, where investment totaled USD 1.4 billion over the same period. Outside of Java, investment totaled USD 11.6 billion, accounting for 52.6% of total investment in January-March. This amount of investment is a 16.3% increase year-on-year.
The minister also stated that investors would likely opt to expand outside of Java in the future due to lower labor costs and access to raw materials. Other regions’ infrastructure and logistics would have developed by then. The lion’s share of investment in Indonesia in Q1 2023 went to basic metal, metal products, non-machinery, and equipment industries, for a cumulative total of USD 3.1 billion.
(Source: Jakarta Globe)