During the first six months of 2023, the realization of investment in Indonesia has reached IDR 678.7 trillion amid the uncertainty of the global economic conditions. The Minister of Investment/Head of the Investment Coordinating Board (BKPM) explained that the investment realization during the first semester of 2023 grew by 16.1% annually, reaching 48.5% of the total target of IDR 1,400 trillion. The Minister is optimistic that one semester will surpass and can reach Rp 1,400 trillion. Foreign direct investment (FDI) still dominates the investment realization in the first half of 2023, contributing 53.5% of the total investment realization or IDR 363.3 trillion.
Indonesia remains one of the destinations for investors to invest. This reflects that despite the global conditions, as we all know, are not yet in a normal position, the global confidence in the Indonesian government is quite remarkable. Looking at the origin of investments, Singapore continues to top the list of the five largest investing countries from January to June 2023. It is followed by China and Hong Kong in second and third place, respectively, with Japan in the fourth position. The United States is ranked fifth. In the first half of 2023, the realization of domestic direct investment (PMDN) reached IDR 315.4 trillion, contributing 46.5% of the total investment realization in the first semester of 2023. The growth of PMDN realization in the first half of 2023 increased by 15% annually, while FDI grew by 17.1%. Regarding the sectors contributing to investments, the basic metal industry, metal goods, non-machinery, and equipment still remain the largest contributors from January to June 2023, amounting to IDR 89 trillion. The transportation, warehouse, and telecommunication sector with IDR 79.1 trillion, mining with IDR 71.4 trillion, housing, industrial zones, and offices with IDR 58.3 trillion, and chemical and pharmaceutical industry with IDR 48.1 trillion. This demonstrates that the policy of downstreaming mineral resources still plays a role, even though some countries and international institutions have requested Indonesia to gradually review the ban on the export of commodities.
