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Foreign Investors Overflowing in Indonesia

foreign investment in Indonesia
Foreign Investors Overflowing in Indonesia

The Investment Coordinating Board Ministry has said that the contribution of foreign investment into PMA structures in the second quarter of 2022 reached Rp163.2 trillion. 

This foreign investment accounted for 54 percent of total investment in Indonesia and increased 39.7 percent compared to the same period in 2021.

Investment Minister Bahlil Lahadalia said the contribution of foreign investment was the highest compared to the previous quarters.  

The largest total foreign investment income came from the following countries:

  • Singapore at US$3.1 billion
  • China at US$2.3 billion
  • Hong Kong at US$1.4 billion
  • Japan at US$0.9 billion
  • The United States US$0.8 billion.

Lahadalia said that the achievement shows that foreign investment interest in Indonesia has not subsided. 

We understand that the current global economic situation is uncertain due to the Russia-Ukraine war and the tightening of interest rates by the American central bank will indeed be a serious challenge for the investment climate in Indonesia in the future,” he said.

However, by looking at Indonesia’s current economic performance and the growth in investment realisation, Lahadalia is still optimistic that investment income can reach the target by the end of this year.

“I still believe that the investment realisation target directed by the President (Joko Widodo) of Rp1,200 trillion in 2022 can be achieved by working with the central government, regional governments, and investors,” he concluded.

Investment began to flock to Indonesia in the second quarter of 2022, meaning investment realisation has reached Rp302.2 trillion.  

On an annual basis, investment grew by 35.5 percent year on year and grew 7 percent on the quarter. In particular, foreign investment reached 54 percent or Rp163.2 trillion, growing 39.7 percent on the previous year.  

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