The Ministry of Investment/Investment Coordinating Board (BKPM) has reported that the investment realization throughout 2023 has reached IDR 1,418.9 trillion. Surpassing the initial target of IDR 1,400 trillion by 101.3%, with a total workforce absorption of 1,823,543 individuals. The breakdown includes foreign direct investment (PMA) realization amounting to IDR 744.0 trillion, equivalent to 52.4% of the total investment, and domestic direct investment (PMDN) realization of IDR 674.9 trillion, constituting 47.6%. Minister of Investment/Head of BKPM, Bahlil Lahadalia, announced these figures during the presentation on the 2023 investment realization in Jakarta. Bahlil highlighted a 17.5% year-on-year growth in investment compared to the 2022 figure of IDR 1,207.2 trillion. The yearly growth in PMA for 2023 was 13.7%, while PMDN grew by 22.1%. Investment realization in 2023 was distributed across five main sectors, including basic metal industries, metal goods, non-machine and equipment; transportation, warehousing, and telecommunications; mining; housing, industrial estates, and offices; as well as the chemical and pharmaceutical industry. Furthermore, investments in 2023 were spread across regions like West Java, DKI Jakarta, East Java, Central Sulawesi, and Banten. Singapore, China, Hong Kong, Japan, and Malaysia stood as the top five countries with the highest investments in Indonesia.
During the fourth quarter of 2023, the investment realization amounted to IDR 365.8 trillion, witnessing a 16.2% year-on-year growth, providing employment opportunities for 457,895 people. The Q4 achievement comprised PMA realization of IDR 184.4 trillion (50.4%) and PMDN realization of IDR 181.4 trillion (49.6%). PMA saw a 5.3% growth year-on-year, while PMDN experienced an impressive 29.9% growth during this period. Minister Bahlil highlighted the excellent growth of PMDN during this quarter. The major sectors in Q4 2023 were basic metal industries, metal goods, non-machine and equipment; mining; transportation, warehousing, and telecommunications; chemical and pharmaceutical industries; as well as housing, industrial estates, and offices. The Q4 2023 investment distribution was highest in West Java, East Java, DKI Jakarta, Central Sulawesi, and Banten. The top five investing countries during this quarter were Singapore, China, Malaysia, Japan, and Hong Kong.
