Jakarta Investment Realization Q-4 & Jan - Dec 2023

Jakarta Investment Realization in 2023

The Investment Realization achievements for Jakarta in 2023, had officially been published by Indonesia's Investment Coordinating Board (BKPM). DKI Jakarta Province was reported to have a significant investment realization in the fourth quarter of 2023, totalling IDR 36.4 trillion. This achievement is a mix of Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI). Specifically, FDI reached IDR 15.9 trillion, while DDI contributed IDR 20.5 trillion to the province's economy. Over the course of 2023, Jakarta's total investment realization reached IDR 166.7 trillion, breaking down into IDR 95.2 trillion from DDI and IDR 71.5 trillion from FDI.

Investment Realization in DKI Jakarta, January – December 2023

In 2023, DKI Jakarta Province emerged as a significant contributor to Indonesia's national investment landscape. It secured the second position in cumulative Direct Domestic Investment (DDI) and Foreign Direct Investment (FDI) with a total investment of IDR 166.7 trillion, accounting for 11.7% of the national investment realization.

In terms of FDI realization, DKI Jakarta ranked fourth nationally. It brought about USD 4.8 billion (approximately IDR 71.5 trillion), representing 9.6% of Indonesia's total FDI for the year. While for DDI realization, the province led with a total DDI of IDR 95.2 trillion. The amount was equivalent to 14.1% of the total national DDI realization in 2023.

The following is a comparison of investment realization year on year (YoY) between Quarter IV 2022 and Quarter IV 2023

Compared to year-on-year figures, there was a 6.8% increase in investment realization from IDR 34.0 trillion in Q4 2022 to IDR 36.4 trillion in Q4 2023. The FDI segment saw a substantial growth of 64.4%, rising from IDR 9.7 trillion in the previous year to IDR 15.9 trillion. However, DDI experienced a decline of 16.0%, from IDR 24.4 trillion in Q4 2022 to IDR 20.5 trillion in the corresponding quarter of 2023.

Comparison of investment realization in January – December 2022 and 2023

The year-on-year comparison reveals a robust growth in investment within the province. The total investment realization for January to December 2023 saw a 16.6% increase from IDR 143.0 trillion in 2022. Specifically, FDI surged by 33.1% from IDR 53.7 trillion in 2022 to IDR 71.5 trillion in 2023. Similarly, DDI experienced a growth of 6.7%, rising from IDR 89.2 trillion in 2022 to IDR 95.2 trillion in 2023.

On the other hand, PT. Selullar Telecommunication and PT. Mass Rapid Transit Jakarta Persoda led the investment growth, as the top FDI and DDI entities respectively. PT. Selullar Telecommunication invested a total of IDR 25.6 trillion, while PT. Mass Rapid Transit Jakarta Persoda, a domestic entity, contributed IDR 5.2 trillion to the province's investment portfolio.

Realization of investment January – December 2023 based on the business sectors in DKI Jakarta.

On the domestic front, the sector that led the investment landscape was Transportation, Warehouse, and Telecommunication, amassing a staggering IDR 24.9 trillion (26.2%). This indicates a robust focus on improving the transport and communications infrastructure within the country. The Housing, Industrial Area, and Office Building sector followed, with investments reaching IDR 16.6 trillion (17.5%). The Other Services sector was not far behind, capturing IDR 15.5 trillion (16.3%). The fourth and fifth ranks were held by Wholesale and Retail Trade, Repair of Motor Vehicles, and Construction, with IDR 12.4 trillion (13.0%) and IDR 11.0 trillion (11.5%) in investments.

Turning to Foreign Direct Investment, the Transportation, Warehouse, and Telecommunication sector again takes the lead but with an even larger portion of the investments at IDR 35.1 trillion (49.0%). This underscores the sector's attractiveness to foreign investors, likely due to the potential for high returns and significant growth prospects. The Other Services sector secures the second position, with IDR 13.3 trillion (18.6%). The Wholesale and Retail Trade, Repair of Motor Vehicles sector comes in third, with IDR 7.2 trillion (10.1%). Housing, Industrial Area, and Office Building, and Construction are at the fourth and fifth positions, with IDR 5.3 trillion (7.4%) and IDR 2.5 trillion (3.5%) in investments.

Realization of investment Q4 2023 based on the business sector in DKI Jakarta.

For Domestic Direct Investment (DDI), the leading sector was Housing, Industrial Area, and Office Building, which attracted IDR 4.4 trillion (21.6%). This was followed by the Transportation, Warehouse, and Telecommunication sector with IDR 4.3 trillion (20.9%). Other Services came in third with an investment value of IDR 3.2 trillion (15.7%). The fourth and fifth sectors are Wholesale and Retail Trade, Repair of Motor Vehicles, and Construction, securing IDR 2.6 trillion (12.8%) and IDR 2.2 trillion (10.8%).

As for Foreign Direct Investment (FDI), the Transportation, Warehouse, and Telecommunication sector stood out with a significant lead of IDR 9.2 trillion (57.7%). The Other Services sector follows with IDR 2.0 trillion (12.3%). The Housing, Industrial Area, and Office Building sector came as the third-highest, with investments worth IDR 1.0 trillion (6.3%). The remaining two sectors in the top five were Wholesale and Retail Trade, Repair of Motor Vehicles, and the Food Industry, with investment values of IDR 0.99 trillion (6.2%) and IDR 0.63 trillion (4.0%).

Distribution of investment realization from January to December 2023 based on city and district areas in DKI Jakarta.

For the entire year of 2023, the total DDI in Jakarta amounted to a significant IDR 95.2 trillion. The South Jakarta region attracted the lion's share, with IDR 34.6 trillion invested, accounting for 36.3% of the total DDI. This was followed by Central Jakarta, with an investment of IDR 25.3 trillion (26.6%). West Jakarta came in third position with IDR 11.8 trillion (12.4%) investment, followed by North Jakarta with IDR 14.7 trillion (15.4%). Lastly, East Jakarta contributed IDR 8.8 trillion (9.2%) followed by the Thousands Islands region. Despite its status as the smallest contributor, the Thousands Islands region still saw an inflow of investment at IDR 0.04 trillion.

In the fourth quarter of 2023, the total DDI was IDR 20.5 trillion. South Jakarta continued to be the most attractive area for investors, garnering IDR 7.1 trillion or 34.6% of the quarter's investments. Central Jakarta came afterwards with IDR 4.0 trillion, representing 19.3% of the investments for the quarter. North Jakarta came third with a total investment of IDR 4.6 trillion (22.3%). Following that, West Jakarta received IDR 2.2 trillion (10.8%), East Jakarta had IDR 2.6 trillion (12.7%), and the Thousand Islands received a relatively minor amount of IDR 0.01 trillion, constituting 0.1% of Q4's investments.

From the distribution of investment realization, South Jakarta emerges as the preferred destination for domestic investors throughout the year and specifically in the last quarter, suggesting a strong business environment or favorable policies that attract domestic investment. Central and North Jakarta also appear to be key regions for investment, securing sizable shares across both periods. The consistency in investment patterns across the year and specifically in Q-4 indicates sustained investor confidence in these regions.

Throughout the year 2023, Jakarta attracted a total FDI of IDR 71.5 trillion. The charts reveal a clear preference for the South region of Jakarta, which received IDR 47.4 trillion, representing a majority of 66.2% of the total FDI. This is indicative of South Jakarta's strong appeal to foreign investors, possibly due to its strategic location, infrastructure, or business opportunities. The Central region also drew considerable attention, securing IDR 7.3 trillion and accounting for 10.2% of the annual FDI. The West and North regions garnered IDR 3.0 trillion (4.2%) and IDR 7.3 trillion (10.2%), respectively. The East region saw IDR 6.5 trillion in investments, constituting 9.2% of the year's FDI.

Focusing on the fourth quarter of 2023, the total FDI in Jakarta was IDR 15.9 trillion, with the South region again leading the way with IDR 10.9 trillion, equating to 68.4% of the quarter's FDI. This consistency underscores the sustained confidence of foreign investors in South Jakarta. The Central region attracted IDR 1.7 (10.4%), while the North region received IDR 2.2 trillion (14.0%). The West region's FDI for the quarter was IDR 0.5 trillion, which is 3.2% of the total, and the East region had IDR 0.6 trillion (3.9%). The Thousand Islands did not record any FDI in the fourth quarter.

These charts clearly show that, in 2023, South Jakarta was the highest contributor for foreign investment, with significant investments also delivered from the Central and North regions. Overall, Jakarta investment realization has outperformed 2023 expectations. It not only exceeded the goals but also showed improvements in a number of areas and classifications over the course of the year's four quarters. This achievement served as a benchmark for continued investment growth in the years to come.