TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Charting Indonesia’s investment opportunities, challenges through ASEAN leadership
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
A
fter the monumen- tal responsibility of hosting the Group of 20 Summit last year, Indonesia is continu- ing its streak of leadership by hosting the biannual ASEAN Summit this year.
In addition to showcasing Indonesia’s capabilities and leadership skills, the ASEAN Summit also presents an im- mense opportunity to at- tract foreign investment to Indonesia by showcasing its strength in natural resourc- es, refined systems and re- silience during the global re- cession.
Despite the loss of foreign direct investment (FDI) in 2020 as a result of the COV- ID-19 pandemic, the ASEAN Investment Report 2022 showed that the numbers have slowly picked up for all ASEAN member nations since 2021, cementing the re- gion’s place as a major FDI destination in the developing world and its expectations to become a vital instrument in driving global economic re- covery.
Data released by the In- vestment Ministry/BKPM shows that Indonesia saw its FDI increase by 44.2 per- cent to US$45.6 billion in 2022, with the largest sourc- es of funds being from Singa- pore, China, and Hong Kong.
The government aims to in- crease its foreign and domes- tic investment target to US$92 billion in 2023, relying on its abundance of natural resourc- es and a large domestic market that offers a huge potential for long-term investment opportu- nities.
The International Monetary Fund (IMF) forecast for global growth is at 2.7 percent for 2023, while ASEAN is still forecast to grow substantially faster than the global average at 4.7 percent. As tensions grow between the United States and China, ASEAN member countries see an oppor- tunity to rise to the top in terms of investment opportunities and foreign ties.
However, the growth within the region has not always been parallel. The ASEAN Invest- ment Report 2022 also outlined how in 2021, FDI in six mem- ber states rose, while inflows in Vietnam and Cambodia were flat and investment in Brunei Darus- salam and Myanmar declined.
With Indonesia seeking to play an even larger role in ASEAN as well as the global economy, The Jakarta Post seeks to explore the country’s chal- lenges in attracting foreign in- vestment while keeping in mind the most promising industries across ASEAN member states to better understand Indonesia’s direction going forward.
On Aug. 23, the 15th instalment of JakPost Spotlight will take the theme of “Riding the wave of In- donesia’s ASEAN Chairmanship 2023 to encourage investment” and aims to discuss relevant top- ics with some of the most influ- ential figures and key decision- makers in Indonesia in a panel discussion.
Attending the dialogue will be Nurul Ichwan, Dep- uty Minister for Investment Promotion at the Ministry of Investment/BKPM; Da- vid Fernando Audy, Operat- ing Partner at East Ventures, Legacy Lead ASEAN Business Entity; and Sidharto R. Suryo- dipuro, SOM leader ASEAN - Indonesia and Director Gen- eral for ASEAN Cooperation at the Ministry of Foreign Af- fairs. They will be exchanging their views on the importance of FDI to global economic re- covery efforts as well as the in- vestment forecast for ASEAN in 2023.
As the discussions will be held online, participants are encouraged to register for free by visiting bit.ly/Spotlight-15.
