Foreign direct investment into Indonesia has accelerated to a new record high from April to June this year, highlighting the country's robust economic recovery amid a prolonged Covid-19 pandemic and new global inflation and recession threats. The Ministry of Investment/Investment Coordinating Board (BKPM) announced Tuesday that the foreign direct investment into Indonesia reached IDR 163.2 trillion in the second quarter, or up 39.7% in rupiah term from the same period last year. It accelerated from a 30.2% pace in the first quarter. Domestic direct investment also increased, albeit at a slower pace of 30.9%, to IDR 139 trillion from the same period last year. In total, BKPM recorded IDR 302.2 trillion investment in the second quarter, up 35.5% from IDR 223 trillion last year. BKPM data exclude investments in oil and gas, finance and banking, home industries, or small and medium enterprises. The Minister of Investment/Head of BKPM Bahlil Lahadalia said it was the fastest investment growth on record in years. "This performance also signifies investment recovery since the pandemic hit two years ago," Bahlil said.
Incoming investment is still dominated by outside Java, amounting to IDR 157.1 trillion, or 52% of the total investment. Meanwhile, regions outside Java attracted IDR 145.1 trillion, or 48% of the total investment. The basic metal, metal goods, non-machinery, and equipment industries lead with IDR 48.2 trillion in investments in the second quarter, followed by the mining sector with IDR 33 trillion and the housing, industrial estates, and offices sector with IDR 26.7 trillion. The transportation, warehouse, and telecommunications sectors came fourth with IDR 25.6 trillion, and the food industry came fifth with IDR 22.4 trillion. Cumulatively, the total investment in Indonesia reached IDR 584.6 trillion in January-June, an increase of 32% from last year. That was equivalent to 60.4% of BKPM's target of IDR 968.4 trillion this year.
Source: https://jakartaglobe.id/business/indonesia-fdi-accelerates-to-a-new-record-high-in-q2-2022
