Despite the COVID-19 pandemic, Indonesia has surprisingly raised the value of its Foreign Direct Investment (FDI) from 2020 until 2022. As one of the most favorite FDI destination, Indonesia’s FDI value increased 63.6% or IDR 168.9 trillion (US$ 10.83 billion) in Q3 2022 or 54.9% of the total expected FDI for 2022, according to Minister of Investment/Chairman of the Investment Coordinating Board (BKPM), Bahlil Lahadalia.
The data below shows the top 5 countries that contributed the most to Indonesia’s FDI non-banking and non-oil and gas sectors, in 2022:
- Singapore (US$ 3.6 billion, 34.8%) in the sectors of transportation, telecommunication, real estate, and agri-food;
- Hong Kong (US$ 1.5 billion, 15.0%) in the sectors of mineral resource downstreaming, lithium battery industry, transportation, renewable energy, health infrastructure, and digital transformation;
- China (US$ 1.4 billion, 13.2%) mainly invests their funds in the sectors of industrial, infrastructure, and transportation;
- Japan (US$ 0.8 billion, 8.0%) in the sectors of knowledge and technology, development of electric vehicles (EV), food, human resources, and healthcare;
- The United States Of America (US$ 0.6 billion, 6.1%) in the sectors of mining, professional, scientific, technical services, and manufacturing.
The rise of Indonesia’s FDI was mainly boosted by the rise of investment in development of resources processing such as mining, manufacturing industry, services, etc.
Looking back at the growth of Indonesia’s FDI from 2018-2022, the trend is increasing every year. Based on data from the BKPM, the FDI value reached IDR 721.3 trillion in 2018, IDR 809.6 trillion in 2019, IDR 826.3 trillion in 2020, IDR 901 trillion in 2021, and IDR 147.2 trillion in January-March 2022. With its FDI growth, Indonesia is expected to rise to upper-income status in 2030.
