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Investment growth on track in first quarter, jump in F&B sector
An strong increase in domestic investment compensates for slower growth in foreign direct investment (FDI).
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Investment Minister Bahlil Lahadalia presents data on domestic and foreign investment during a press briefing in Jakarta on July 21, 2023. (Investment Ministry/-)
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ndonesia recorded Rp 401.5 trillion (US$24.7 billion) worth of investment in the first quarter of this year, marking a 22.1 percent increase compared with the same period last year.
The total, which comprises both domestic and foreign direct investment (FDI), represents 32.4 percent of the target set out in the 2020-2024 Investment Ministry Strategic Plan for 2024.
However, it only amounts to 24.3 percent of the more ambitious target set by President Joko “Jokowi” Widodo for this year, which is to attract investment totaling Rp 1.65 quadrillion.
FDI only grew at 15.5 year-on-year (yoy) in the first quarter, marking a slowdown from 20.2 percent annual growth seen in the first three months of last year. This sluggish growth was compensated for by faster growth of domestic investment, which increased by 29.7 percent yoy.
FDI still accounts for slightly more than half of the total investment, with the biggest amounts in the first quarter coming in from Singapore and China.
Investment Minister Bahlil Lahadalia acknowledged that the FDI portion had dropped to 50.9 percent from the historically typical 52 or 53 percent, but he suggested that still reflected global investor confidence in Indonesia amid global economic uncertainty.
