The cumulative investment realization in East Java (Jatim) for 2023 reached IDR 145.1 trillion, driven by increased foreign direct investment (FDI) and domestic direct investment (DDI) in the region. According to data released by Bahlil Lahadalia, the Minister of Investment/Head of the Indonesia Investment Coordinating Board (BKPM), on January 24, 2024, FDI and DDI realization in East Java for Q4 2023 amounted to IDR 45 trillion. Governor Khofifah Indar Parawansa of East Java stated that the cumulative investment realization in 2023 has surpassed the target set in the Regional Medium-Term Development Plan (RPJMD). "The investment realization in East Java has exceeded the RPJMD target and also surpassed the national investment target," said Khofifah on Sunday, January 27, 2024. Khofifah noted that the year-on-year investment realization for 2023 increased by 31.5%, with FDI realization reaching 56.3% and DDI reaching 14.7%. The Q4 2023 quarterly investment realization data showed an increase of 45.6% year-on-year and 15.7% quarter-to-quarter, amounting to IDR 45 trillion.
The investment realization this year has generated employment for 236,769 individuals, including 1,284 foreign workers and 235,485 Indonesian workers. This investment surge is attributed to the high realization of downstream projects totaling IDR 52.1 trillion, equivalent to 35.9% of the total investment realization in 2023. Downstream projects include copper smelters, wood and its derivatives industries, pharmaceutical and its derivatives industries, as well as plantation, marine, fisheries, and forestry industries and their processing industries. Khofifah emphasized that downstream projects are in line with the central government's policies, constituting 35.9% of the total 2023 investment realization. Specific downstream projects include coal downstreaming with FDI amounting to USD 2,612 million and DDI amounting to IDR 3,206.5 billion, and petroleum and natural gas downstreaming with FDI reaching USD 297.4 million and DDI reaching IDR 2,661.8 billion. Additionally, plantation, marine, fisheries, and forestry downstreaming saw FDI of USD 159.4 million and DDI of IDR 4,667.2 billion. Khofifah highlighted the ongoing promotion of downstream projects, which align with the central government's policies, constituting 35.9% of the total 2023 investment realization.
