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2023 investment beats targets despite slowdown in last quarter
Last year’s domestic and foreign direct investment exceeded targets set out in the national development plan and stated by President Joko “Jokowi” Widodo, but there was a slowdown in the final quarter.
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Investment Minister Bahlil Lahadalia (wearing yellow tie) gets ready to brief reporters at his office in Jakarta on Jan. 24, 2023. (The Jakarta Post/Deni Ghifari)
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nvestment in 2023 exceeded targets set out in the national development plan and stated by President Joko “Jokowi” Widodo, but there was a slowdown in the final quarter.
Domestic and foreign direct investment last year totaled Rp 1.42 quadrillion (US$90.27 billion), up from Rp 1.2 quadrillion registered a year prior.
The latest figure far exceeds the Rp 1.1 quadrillion target set in the 2025-2029 national mid-term development plan (RPJMN) and also marginally exceeds a target set by Jokowi in the first half of 2023, when he bumped it up to Rp 1.4 quadrillion.
“I must admit that the [election year] is not easy. […] I have to be open about that,” said Bahlil about investment prospects in 2024. He went on to say that the government was not going to revise down the Rp 1.6 quadrillion goal for this year.
The 17.5 percent increase in realized investment last year marks a slowdown from much stronger annual growth of 34 percent achieved in 2022, which Bahlil attributed to a base effect, given that investment had still been relatively weak in 2021 as a result of the COVID-19 pandemic.
Southeast Asia’s largest economy showed signs of weakness, however, in last year’s fourth quarter, when it reeled in Rp 365 trillion, marking a steep decline from Rp 374.4 trillion logged in the preceding quarter.
