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View all search resultsReforms, vaccination to lead to investment boost in 2021: BKPM
The overall investment realization grew by 2.1 percent year-on-year (yoy) to Rp 826.3 trillion (US$58.8 billion) and was higher by around 1.11 percent than the target.
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M
ore investment is expected to materialize in Indonesia this year, as reform and hopes of a receding pandemic, boost expectations, while the government approaches bona fide companies, such as Tesla, to invest in the country.
The Investment Coordinating Board (BKPM) reported on Monday that Indonesia recorded a growth in overall investment realization last year despite the global economic downturn caused by the COVID-19 pandemic.
The overall investment realization grew by 2.1 percent year-on-year (yoy) to Rp 826.3 trillion (US$58.8 billion) and was higher by around 1.11 percent than the target.
Domestic direct investment (DDI) realization increased by around 7 percent yoy to Rp 413.5 trillion, while that of foreign direct investment (FDI) dropped by 2.4 percent yoy to Rp 412.8 trillion.
“The contribution of [domestic investment] was extraordinary during the pandemic,” BKPM head Bahlil Lahadalia said in a virtual briefing on Monday. “They are the defense line for the overall investment realization during the pandemic.”
While FDI realization declined, he added, the decline was less severe than the global average, which reflected investor confidence in the country.
Investment expenditure accounted for around 30 percent of Indonesia’s gross domestic product (GDP), the second-largest contributor after consumer spending. It contracted 6.48 percent yoy in the third quarter as the whole economy shrank 3.49 percent.
