Brief Information
Indonesia is a prime target for investment on a global scale. This time, ET-Consultant provides an overview of Indonesia’s investment outlook in the year 2023, along with a brief forecast on the anticipated investment landscape in the current year. From December 2022 to September 2023, the investment landscape in Indonesia continued to experience growth. In just 9 months, the overall investment surged by 59.6 trillion, with foreign investment increasing by 21 trillion and local investment by 38.6 trillion.
Investment Outlook April – June 2023
The realization of investments in April – June (second quarter) of 2023 reached Rp349.8 trillion, showing an increase of 6.3% compared to the previous quarter, and an increase of 15.7% compared to the same period in 2022. Furthermore, the contribution of foreign direct investment in the second quarter of 2023 reached 53.3% of the total investment, amounting to Rp 186.3 trillion, which is the highest value since 2019. The top five contributors to foreign investments are Singapore (US$3.4 billion), China (US$2.6 billion), Hong Kong (US$2.0 billion), Japan (US$1.0 billion), and Malaysia (US$0.8 billion).
Below are the five sectors that have attracted the most investments in the second quarter of 2023:
- Transportation, warehousing, and telecommunication sectors at Rp43.0 trillion
- Metal industry, metal goods, non-machinery, and equipment sectors at Rp42.4 trillion
- Mining sector at Rp37.9 trillion
- Housing, industrial estate, and office area sectors at Rp30.4 trillion
- Electricity, gas, and water sectors at Rp25.6 trillion
Investment Outlook July – September 2023
Whereas, the following are sectors with the highest investment in July – September (third quarter) of 2023:
- Metal industry, metal goods, non-machinery, and equipment sectors at Rp56.9 trillion.
- Mining sector at Rp41.9 trillion
- Transportation, warehousing, and telecommunication sectors at Rp40.9 trillion
- Chemical and pharmaceutical industry sectors at Rp28.7 trillion
- Housing, industrial estate, and office area sectors at Rp25.5 trillion
Singapore retained its position as the largest contributing country in terms of investment (US$4.4 billion), followed by China (US$1.8 billion), Hong Kong (US$1.7 billion), Japan (US$1.3 billion), and Malaysia (US$900 million).
Projections for 2024
The year 2024 started off on a positive note with Vinfast, a Vietnamese electric automotive manufacturer, announcing an investment plan of 18.7 trillion in Indonesia. Furthermore, the Investment Coordinating Board has established an investment target of Rp 1.650 trillion for this year. Authorities show optimism regarding this figure as the investment in Indonesia continues to experience growth, even amid the upcoming political presidential election period. This signifies the growing confidence of foreign investors in the Government’s policies and Indonesia’s political and economic landscape.
***
ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.
Ready to find out more?
Excellent and Trusted Consultant (ET Consultant)
PPHUI Building Lantai 2 suite 210 Jl. H.R. Rasuna Said Kav. C-22 Kuningan
Jakarta Selatan, 12940 Indonesia.
Tlp : 021 5290 7039
Email : [email protected]
