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View all search resultsForeign direct investment (FDI) has declined sharply, but the overall investment figure continued to rise in the second quarter (Q2) as domestic businesses picked up the slack.
oreign direct investment (FDI) has declined sharply, but the overall investment figure continued to rise in the second quarter (Q2) as domestic businesses picked up the slack, which economists view as a reflection of national economic resilience.
In a Tuesday press conference in Jakarta, Investment Minister Rosan Roeslani attributed the recent drop in FDI to geopolitical and global economic developments weighing on investment appetite, noting that "The competition to attract investment is increasing”.
He said engagement with foreign businesses was important to lure investments to Indonesia and argued that President Prabowo Subianto’s frequent foreign visits facilitated this endeavor, since the envoys normally met not just state officials but also business representatives.
Total realized investment in the second quarter amounted to Rp 477.7 trillion (US$29.1 billion), up 11 percent from the Rp 428.4 trillion logged in the corresponding quarter of the preceding year.
FDI has long accounted for around half or slightly more than half of total investment, but this year paints a different picture so far.
FDI dropped 6.95 percent yoy to Rp 202.2 trillion and therefore accounted for only 42.3 percent of the total investment figure in Q2, while Rp 275.5 trillion in domestic investments made up the other 57.7 percent.
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