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Investment in Indonesia Reaches Record Highs

Local news wires are reporting that the Ministry of Investment/ Investment Coordinating Board (BKPM) recently announced Foreign Direct Investment (FDI) in Indonesia reached IDR 163.2-trillion in Q2, 2022, which is an almost 40-percent Year-on-Year increase and more than a 30-percent increase on Q1, 2022.

According to the Jakarta Globe, Domestic Direct Investment (DDI) “also increased, albeit at a slower pace of 30.9-percent, to IDR 139-trillion from the same period last year. In total, BKPM recorded IDR 302.2-trillion of investment in the second quarter, up 35.5-percent from IDR 223-trillion last year. BKPM data exclude investments in oil and gas, finance and banking, home industries, or small and medium enterprises.”

In the first half of 2022, the total amount of investment reached IDR 584.6-trillion, which is almost USD 40-billion and almost half of the total target set for 2022.

Singapore, China, Hong Kong, Japan, and the US have been the top five investors.

Antara News are reporting that Investment Minister Bahlil Lahadalia said that this might be the first time in Indonesia’s history when investment realization has risen this high.

PMA’s accounted for 54-percent of the total investment realization in Q2 2022, while PMDN’s accounted for 46-percent of the total figure.

West Java, Jakarta, Central Sulawesi, East Java, and Riau were the most popular areas for investment, particularly in the sectors covering basic metal, metal goods, non-machinery, and equipment; mining; housing, industrial, and office complex; transportation, warehouse, and telecommunications; as well as food industries.

Bahlil said several factors support Indonesia as an investment destination, such as investor confidence in President Jokowi’s leadership, domestic political stability, better legal processes, as well as transparency in the acceleration of services. “It shows our success in implementing the Job Creation Act,” he added.

Sources: Antara News, Jakarta Globe

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Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

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His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

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