The Big 5 Indonesian Investment Trends in 2022

Knowing investment trends is crucial for making smart investment choices. These trends reveal which parts of the economy are growing, which companies are thriving, and which industries will likely change in the future. By following investment trends, investors can predict market changes and adjust their portfolios. This can lead to profits if they invest in growing sectors or avoid declining industries. Additionally, investors can spot new markets or technologies that will be important in the future, such as cryptocurrencies. In summary, understanding investment trends is vital for making informed decisions and maximizing returns on investments.

Indonesia has been experiencing steady economic growth in recent years, despite the pandemic, and the government has been implementing policies to attract foreign investment. Please find below the detailed information of the Investment Trends in Indonesia, in the year 2022.

1. Top 5 Industrial Sectors with the Highest Increased Investment Realization (Local Companies)
   • Transportation, Warehouse and Telecommunication (IDR 75.1 Trillion (13.6%))
   • Housing, Industrial Estates, and Office Buildings (IDR 66.2 Trillion (12.0%))
   • Mining (IDR 62.5 Trillion (11.3%))
   • Food Industry (IDR 54.9 Trillion (9.9%))
   • Food Crops, Plantation and Livestock (IDR 38.9 Trillion (7.0%))
2. Top 5 Industrial Sectors with the Highest Increased Investment Realization (Foreign-owned Companies)
   • Basic metal, metal goods, non-machinery and equipment industry (USD 11.0 billion (24.0%))
   • Mining (USD 5.1 Billion (11.3%))
   • Chemical and Pharmaceutical Industry (USD 4.5 Billion (9.9%))
   • Transportation, Warehouse and Telecommunications (USD 4.1 Billion (9.0%))
   • Electricity, Gas and Water (USD 3.8 Billion (8.3%))
3. Top 5 Industrial Sectors with the Highest Increase in Investment Realization (Combination of Local Companies and Foreign-owned Companies)
   • Basic Metal Industry, Metal Goods, Non-Machinery and Equipment (IDR 171.2 Trillion)
   • Mining (IDR 136.4 Trillion)
   • Transportation, Warehouse and Telecommunication (IDR 134.3 Trillion)
   • Housing, Industrial and Office Areas (IDR 109.4 Trillion)
   • Chemical and Pharmaceutical Industry (IDR 93.6 Trillion)
4. Top 5 Locations with the Highest Investment Realization (Local Companies)
   • DKI Jakarta (IDR 89.2 Trillion (16.1%))
   • West Java (IDR 80.8 Trillion (14.6%))
   • East Java (IDR 65.4 Trillion (11.8%))
   • Riau (IDR 43.1 Trillion (7.8%))
   • East Kalimantan (IDR 39.6 Trillion (7.2%))
5. Top 5 Locations with the Highest Investment Realization (Foreign-owned Companies)
   • Central Sulawesi (USD 7.5 Billion (16.4%))
   • West Java (USD 6.5 Billion (14.3%))
   • North Maluku (USD 4.5 Billion (9.8%))
   • DKI Jakarta (USD 3.7 Billion (8.2%))
   • Banten (USD 3.4 Billion (7.5%))
6. Top 5 Locations with the Highest Investment Realization (Combination of Local Companies and Foreign-owned Companies)
   • West Java (IDR 174.6 Trillion)
   • DKI Jakarta (IDR 143.0 Trillion)
   • Central Sulawesi (IDR 111.2 Trillion)
   • East Java (IDR 110.3 Trillion)
   • Riau (IDR 82.5 Trillion)
7. Top 5 Contributing Countries with the Highest Investment Realization
   • Singapore (USD 13.3 Billion)
   • People’s Republic of China (USD 8.2 Billion)
   • Hong Kong, PRC (USD 5.5 Billion)
   • Japan (USD 3.6 Billion)
   • Malaysia (USD 3.3 Billion)

Read More: Let’s Familiarize Ourselves with The Latest Indonesian Priority Investment List!

Overall, the total investment realization in Indonesia is IDR 1,207.2 trillion. This number increased by 34.0% from the previous year, with a workforce absorption of up to 1,305,001 people. The total realized PMDN investment is IDR 552.8 trillion, or takes up a portion of 45.8% of the total amount. This value increased by 23.6% from the previous year. While the total realization of FDI investment is IDR 654.4 trillion, or takes up a portion of 54.2% of the total amount. This value increased by 44.2% from the previous year. The investment trend in 2022 is more outside Java Island, which is IDR 636.3 trillion, or takes up a portion of 52.7% of the total amount. This value increased by 35.9% from the previous year. Meanwhile, the investment trend in Java is IDR 570.9 trillion, or 47.3% of the total. This value increased by 31.9% from the previous year.

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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.

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