China Leads Foreign Investment Surge in Indonesia

Indonesia’s maritime and fisheries sector witnessed a substantial investment influx, totaling Rp9.56 trillion as of the third quarter of 2023, according to the Indonesian Ministry of Maritime Affairs and Fisheries (KKP). Of this amount, domestic investment accounted for Rp5.32 trillion, foreign investment reached Rp1.4 trillion, and investment credit totaled Rp2.84 trillion.

Minister Sakti Wahyu Trenggono highlighted that China emerged as the dominant foreign investor, contributing Rp370.74 billion, followed by Malaysia with Rp240.4 billion and Switzerland with Rp152.89 billion. This revelation came during the Indonesia Marine and Fisheries Business Forum 2024, held at the Jakarta Fairmont Hotel on February 5, 2024.

Breaking down the investment by sector, Trenggono outlined that fish processing took the lead with Rp3.65 trillion, followed by fisheries cultivation at Rp2.6 trillion, marketing at Rp1.95 trillion, fishing at Rp1.18 trillion, and fishery services at Rp 186.51 billion.

Emphasising the importance of ecological preservation, Trenggono stressed that the development of the marine and fisheries sectors must prioritise sustainability.

Highlighting the global food security challenge, Trenggono referenced data from the 2023 Food and Agriculture Organisation (FAO), indicating an increase in food shortage rates from 7.9 percent in 2019 to 9.2 percent in 2022. He underscored the significance of addressing food scarcity amid projections of a 30 percent increase in the world’s population by 2050, reaching 9.7 billion people. With this population surge, the demand for protein, particularly sourced from marine biological resources, is anticipated to rise by 70 percent, presenting significant opportunities for industry players and businesses.