The Ministry of Investment and the Investment Coordinating Board (BKPM) reported that during the first semester of 2023, West Java has been the main target for foreign direct investment (FDI).
The Minister of Investment and Head of BKPM Bahlil Lahadalia, stated that the total value of FDI that entered West Java amounted to US$4.5 billion, equivalent to IDR 67.5 trillion (at an exchange rate of IDR 15,000 per US dollar), with a share of 18.3 percent.
In total, West Java received investments worth Rp103.7 trillion during the first semester of 2023. This means that more than half of the investments came from foreign sources, while the rest were from domestic investors.
Following West Java, Central Sulawesi sits on second position with a total FDI of US$3.7 billion, accounting for 14.9 percent of the overall FDI.
“Sulawesi Tengah ranks second in terms of FDI. This is because of nickel downstreaming,” Bahlil said in a press conference on Sunday, July 23, 2023.
DKI Jakarta occupied the third position with the highest FDI realization, amounting to US$2.6 billion. It was followed by Banten province with foreign investments value amounting to US$2.2 billion.
East Java held the fifth position, attracting a total FDI of US$2 billion during the first semester of 2023.
Most favored sectors by foreign investors
In line with the significant investment in downstreaming natural resources, Bahlil noted that the main sectors of interest for foreign investors were basic metal industries, metal goods, non-machinery, and equipment.
These sectors received FDI amounting to US$5.4 billion, constituting 22.1 percent of the total investments in other sectors.
Largest investor country
Singapore sits as the largest investor with US$7.7 billion of fund channeled into Indonesia. However, Bahlil clarified that this investment was not entirely from Singapore.
Instead, Singapore is merely used as a hub, while funds for the investment originated from Indonesian individuals.
Meanwhile, the United States sits as the fifth-largest foreign investor during the first semester of 2023, with a total investment of US$1.6 billion.
“In this case, the US, we no longer provide services to just one specific country, as we can see the investments are becoming more diverse, including from the US,” Bahlil added.
Overall, the Ministry of Investment recorded a total FDI of IDR 363.3 trillion during the first semester of 2023, which accounted for 53.5 percent of the total investments during that period.
