Indonesia has reported a significant influx of foreign direct investments (FDI) amounting to Rp 204.4 trillion (approximately $12.5 billion) in the first quarter of 2024, according to an announcement by Investment Minister Bahlil Lahadalia.
During the period, FDI constituted approximately 50.9 percent of the total investments in Indonesia, with domestic investors contributing around Rp 197.1 trillion. This brought the combined investments in the first quarter to a total of Rp 401.5 trillion.
The Q1-2024 FDI marked a notable 15.5 percent growth on a year-over-year basis and saw a 10.9 percent increase quarter-on-quarter, demonstrating Indonesia’s resilience amid global economic uncertainties.
Speaking to reporters in Jakarta, Minister Bahlil Lahadalia attributed the growing FDI to the trust placed in Indonesia’s economy under President Joko ‘Jokowi’ Widodo’s leadership. Despite global challenges, Indonesia has maintained its attractiveness to foreign investors, reflecting confidence in the country’s economic prospects.
The Ministry of Investment revealed that the manufacturing industry received the largest share of FDI during the first quarter, with approximately Rp 112.5 trillion invested in the sector. Infrastructure and services followed closely, attracting around Rp 64.7 trillion in FDI. The primary sector, encompassing mining and plantation activities, also attracted significant investment, totaling Rp 27.2 trillion.
Singapore emerged as Indonesia’s leading foreign investor in the first quarter, with investments totaling $4.2 billion. Hong Kong and China followed closely, with investments amounting to $1.89 billion and $1.87 billion, respectively. The United States ranked fourth among Indonesia’s FDI sources, with American investments totaling $1.1 billion, followed by Japan at $1 billion.
Minister Bahlil Lahadalia commented on Singaporean investments, noting that some of the funds may represent Indonesian businessmen’s investments routed through Singapore. He suggested that if Indonesian investors did not view Singapore as a primary investment hub, domestic investment volumes could potentially surpass FDI inflows.
Among Indonesian provinces, West Java emerged as the most popular destination for foreign investors, amassing $2.7 billion in FDI. Central Sulawesi followed closely, attracting $1.7 billion in foreign investments.
President Jokowi has set an ambitious target of attracting Rp 1,650 trillion in combined investments throughout 2024. With the latest figures revealing that Indonesia has already achieved 24.3 percent of this target, the country remains on track to meet its investment objectives under President Jokowi’s leadership.
