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Foreign direct investment up 40% in Q2
Realized investment rose 32 percent yoy to Rp 584.6 trillion in the first half of the year, meeting 60 percent of the 2022 target stated in the national medium-term development plan.
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A truck passes containers stacked up at the Hyundai electric car assembly plant in Cikarang, West Java, on May 19. (JP/Divya Karyza)
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trong investment growth reflects confidence in Indonesia’s economy even as global conditions worsen due to rising benchmark interest rates aimed at containing decades-high inflation in many countries.
Realized investment rose 35.5 percent year-on-year (yoy) to Rp 302.2 trillion (US$20 billion) in the second quarter (Q2), accelerating significantly from annual growth of 28.5 percent in the first quarter.
The cumulative six-month realization rose 32 percent yoy to Rp 584.6 trillion, meeting 60.4 percent of the full-year target stated in the national medium-term development plan (RPJMN) – but only 48.7 percent of a goal set by President Joko “Jokowi” Widodo.
“The Investment Ministry is still optimistic that the Rp 1,200 trillion investment realization target ordered by the President can be achieved,” Investment Minister Bahlil Lahadalia said in a press conference on Wednesday.
Foreign direct investment (FDI), which accounted for the lion’s share of actual investment in Q2, increased by 39.7 percent yoy and by 10.8 percent quarter-on-quarter (qoq) to Rp 163.2 trillion in Q2, while domestic direct investment rose 30.8 percent yoy and 2.8 percent qoq to Rp 139 trillion.
At the half-year mark, FDI in 2022 is up 35.8 percent yoy to Rp 310.4 trillion, accounting for 53.1 percent of overall realized investment in the first six months, while its domestic counterpart increased 28 percent to Rp 274.2 trillion.
“This report shows that, even amid multiple global uncertainties, Indonesia still has the hearts and minds of foreign investors,” Bahlil continued.
