Indonesia Records Investment Realization of Rp282.4 Trillion in Q1 2022
Indonesia recorded a total investment realization of Rp282.4 trillion for the first quarter of 2022, a 28.5 percent increase over the same period last year and 16.9 percent increase over that of the fourth quarter of 2021.
The investment realization value in the first quarter contributed 23.5 percent to the investment target of Rp1,200 trillion.
“The increase in investment showed increasing trust of domestic and foreign investors to the Government’s policies particularly on investment sector,” Minister of Investment/ Head of the Indonesian Investment Coordinating Board (BKPM) Bahlil Lahadalia said on Thursday (04/28).
Realization of domestic direct investment (PMDN) in the first quarter of 2022 increased by 25.1 percent, from Rp108 trillion in the same period last year to Rp 135.2 trillion. The largest contributors to the domestic investment were transportation, warehouses, and telecommunication.
In the meantime, the realization of foreign direct investment (PMA) in the first quarter of 2022 increased by 31.8 percent, from Rp111.7 trillion in the same period last year to Rp147.2 trillion. The largest contributors to the realization of foreign direct investment were basic metal industries, metal goods industries, and non-machinery and equipment industries. The increase indicated that President Jokowi’s instruction to ban raw material exports is able to boost downstreaming in nickel manufacturing industry as well as steel and iron industries.
An increasing investment which is recorded outside the island of Java reflected efforts to achieve equal distribution in the realization of investment throughout the country. The investment realization outside the island of Java reached Rp148.7 trillion or increased by 16.6 percent compared to that of the fourth quarter of 2021 (Rp127.5 trillion).
The increase also attributed to the provinces of Riau and Central Sulawesi which are included in the top five most favored locations for PMA and PMDN.
“The President has instructed me to realize an inclusive and profitable investment through an equal investment realization in and outside the island of Java, an increase in value added of natural and mineral resources, and creation of new centers for economy in regions. For that reason, Ministry of Investment/ BKPM has been making efforts and measures to achieve inclusive investment,” Bahlil said.
The largest sectors contributing to the foreign and domestic direct investment were basic metal industry, metal goods, non-machinery and equipment with a total investment of Rp39.7 trillion (14.0 percent), transportation, warehouses, and telecommunication with a total investment of Rp39.5 trillion (14.0 percent), mining with a total investment of Rp35.2 trillion (12.5 percent), housing, industrial zones, and offices, with a total investment of Rp24.9 trillion (8.8 percent), and electricity, gas, and water with a total investment of Rp23.1 trillion (8.2 percent).
The project location with the largest investment realization is Jakarta with a total investment of Rp40.4 trillion (14.3 percent), while the country with the largest foreign investment is Singapore with a total investment of Rp3.6 billion (34.8 percent). (PR of Ministry of Investment/UN) (RAS/MMB)