The domestic machinery and electronics industry sector has experienced increased investment, both from Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI). The Ministry of Investment/BKPM noted that investment in Indonesia's machinery and electronics sector has averaged a 34.5% increase annually over a 5-year period from 2019 to 2023. In 2023 alone, the machinery and electronics sector received USD 1.76 billion in investment, up from USD 1.04 billion the previous year. The main driver of this increase in the sector is the electrical equipment subsector, supported by a significant household market.

Investment in the electrical equipment subsector has averaged a 108.4% annual increase, reaching USD 1.1 billion in 2023, up from USD 517 million the previous year. Investment in other subsectors, such as the computer and electronic industries (including semiconductors), increased by an average of 1.9% per year. Meanwhile, investment in other machinery and equipment industries increased by an average of 29% per year. BKPM Deputy for Investment Promotion Nurul Ichwan stated that they do not set investment targets per sector. "We do not set targets based on sectors. So, there are no specific realization targets in the electronics industry sector," he said to Kontan, on Tuesday (16/4).

Source: https://amp.kontan.co.id/news/bkpm-sebut-investasi-di-sektor-industri-mesin-dan-elektronik-naik-345