Indonesia Investment Realization Q3 - 2023

The realization of Indonesian investment in the third quarter of 2023 experienced a sharp increase. During the period, it reached IDR 374.4 trillion, indicating a rise of 7.0% from the last quarter and 21.6% from the last year of the same quarter. With the attainment in the third quarter, the realization of investment has reached 1,053.1 billion rupiah out of the target set by the President that aimed to reach 1,400 trillion rupiah. This amount represented 75.2% from that target. While in terms of the Strategic Plan Target that projected a total amount of 1,099.8 trillion rupiah, it reached 95.7% of the target. Further, such increment was accompanied by the 516.467 labor absorption with the proportion of domestic and foreign absorption of 66.7% and 33.3% respectively in the third quarter of 2023.

Of the IDR 374.4 trillion, 52.4% was contributed by foreign investment with a total value of 196.2 trillion rupiah. Domestic investment put up 47.6% that accounted for 178.2 trillion rupiah. Both domestic and foreign sectors showed an increment compared to the previous year with 28.2% and 16.2% respectively. In the context of location spread, an almost balanced proportion between Java Island and outside Java Island was indicated in the third quarter of 2023. A proportion of 49% of investment realization was situated in Java Island while the remaining 51% was brought to fruition outside Java Island.

The top five main sectors of the investment realization in the third quarter of 2023 were: 1) Basic metal, metal goods, non-machine and equipment industry with 56.9 trillion; 2) Mining with 41.9%; 3) Transportation, warehouse, and telecommunication with 40.9 trillion; 4) Chemical industries and Pharmacy with 28.7 trillion; 5) Housing, industrial, and office area with 25.5 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 which accounted for almost a quarter of the total FDI realization. This was followed by chemical industry and pharmacy with 10.1% and mining with 10%. As for the domestic direct investment realization (DDI), transportation, warehouse, and telecommunication had the highest realization with 13.9% followed by mining with 12.5% and housing, industrial area, and office complex with 9.3%.