Indonesia Investment Realization Q2 - 2023

There was a significant increase in Indonesian investment realization in the second quartal of the year 2023. During the period, Indonesian investment realization reached IDR 349.8 trillion for its investment realization, showing a rise of 6.3% from the last quarter and 15.7% from the last year of the same quarter. Such increment was accompanied by the 464.289 labor absorption with the proportion of domestic and foreign absorption of 68.5% and 31.5% respectively.

Out of the total IDR 349,8 trillion, a total amount of 163.5 trillion rupiah that accounted 46.7% was contributed by domestic investment. Accordingly, foreign investment rendered 53.5% with a total amount of 186,3 trillion. Both domestic and foreign sector showed increase compared to the previous year with 17.1% and 15% respectively. While in the context of location spread, Indonesian investment sector seemed to concentrate in Java Island with 47.7%. The rest, accounting to 52.3%, was distributed in other Indonesian islands.

The five main sectors of the investment realization in the second quartal of 2023 were: 1) Transportation, warehouse, and telecommunication with 43 trillion; 2) Basic metal industry, non-machine metal commodities, and the associated tools with 42.4 trillion; 3) Mining with 37.9 trillion; 4) Housing, industrial area, and office complex with 30.4 trillion; 5) Electricity, gas, and water with 25.6 trillion. For the foreign direct investment (FDI), the highest realization was in the sector of basic metal industry, non-machine metal commodities, and the associated tools with 20%. As for the domestic direct investment realization (DDI), mining became the sector with the highest realization with 12% followed by housing, industrial area, and office complex sector with 11.3%.

In terms of provincial distribution of investment realization in the same period, Jawa Barat emerged as the province with the highest investment realization (53,7 trillion), followed by Jakarta (43 trillion), Jawa Timur (31.1 trillion), Sulawesi Tengah (26.6 trillion), and Banten (24.9 trillion) in sequence. For FDI realization, Jawa Barat took around a fifth of the total investment realization in Indonesia, making it the province with the highest foreign investment realization in Indonesia. It was followed by Sulawesi Tengah (13.7%), Jakarta (11.5%), and Banten (9.2%). Whilst for DDI realization, Jakarta topped the list with the percentage of 13.2% out of the total domestic investment realization. Riau, Jawa Timur, and Jawa Barat came behind it with 11.2%, 9.8%, and 9.4% respectively.

In terms of the investment realization in the first semester of 2023, Indonesia reached 678.7 trillion which represented 43% of its initial target of 1,400 trillion. In this regard, tertiary sector, which is totally contributed by service sector, gave the biggest contribution with 284.1 trillion that accounted for 41.9% of the total investment. Secondary sector, represented by manufacturing, came as the second-biggest contributor with a slight difference from tertiary sector, 39.8%, The least proportion was contributed by primary sector 18.3%. This percentage was consisted of mining, agriculture, forestry, and fishery sectors with 10.5%, 5.7%, 1.9%, and 0.2% serially.

On international scale, Indonesia did not belong to the top five countries and regions with the highest investment realization. The top five countries and regions were Singapore, China, Hongkong, Japan, and Malaysia which are all Asian countries.Despite the absence of Indonesia in the top five list, the attainment of Indonesian investment realization has marked a progress that depicts continual growth.