IDR 1,261 trillion”/>Head of the Investment Coordinating Board (BKPM) Rosan P Roeslani said that investment realization from January to September 2024 reached IDR 1,261.43 trillion, an increase of 19.78% compared to the same period last year. The total absorption of Indonesian labor during January-September 2024 is 1,875,214 people.
“The amount of investment realization reached 76.45% of this year’s investment target of IDR 1,650 trillion,” said Rosan at a press conference on Investment Realization Achievements for the Third Quarter of 2024 at the Ministry of Investment/BKPM Office, Jakarta, Tuesday (15/10) .
This investment achievement was dominated by foreign investment (PMA) which amounted to IDR 654.40 trillion or equivalent to 51.88% of the total investment realization until September 2024. Meanwhile, investment from domestic investment (PMDN) amounted to IDR 607.03 trillion or 48. 12% of total investment.
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Rosan explained that PMA from Singapore dominates capital injections into Indonesia from January to September 2024 with a value of US$14.35 billion or around IDR 223.6 trillion (exchange rate IDR 15,585). Then followed by investment from Hong Kong with a value of US$6.06 billion or Rp. 94.4 trillion. The third position came from China which disbursed capital of US$5.78 billion or the equivalent of IDR 90 trillion, the fourth came from the United States with a value of US$2.82 billion or the equivalent of IDR 43.9 trillion and the fifth position came from Malaysia with an investment of US$2.72 billion or the equivalent of IDR 42.3 trillion.
“Investment from Singapore over the last 10 years has indeed been the highest investor in Indonesia,” explained Rosan.
The top five PMA subsectors are the basic metal industry, metal goods, non-machinery and equipment with an investment contribution of US$10.18 billion. Then, followed by the transportation, warehouse and telecommunications subsector with an investment value of US$3.97 billion, then there is the mining subsector contributing US$3.86 billion. The chemical and pharmaceutical industry subsector contributed investment of US$3.22 billion and the paper and printing industry subsector with a value of US$2.65 billion.
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In terms of investment distribution, outside Java still dominates with a portion of 50.34% or IDR 635 trillion and in Java IDR 626.43 trillion or the equivalent of 49.66% of the total investment realization
“The spread of investment outside Java is higher than in Java,” said Rosan.
For the third quarter of 2024, Rosan explained that the investment realization achievement was IDR 431.48 trillion or an increase of 15.24% compared to the same period in 2023. This achievement was 26.15% of the total target in 2024. Labor absorption in this quarter was 650,172 people and 1,225,042 people during Semester I 2024.
Also read: High investment is not followed by high labor absorption
Foreign capital still dominates investment achievements in the third quarter of this year with a value of IDR 232.65 trillion or the equivalent of 53.92% of the total investment realization in that quarter. Meanwhile, PMDN in that period reached IDR 198.83 trillion or around 46.08%.
“Annually, FDI in the third quarter of 2024 grew 18.55% year on year (yoy),” explained the Minister of Investment.
Singapore is the country with the largest injection of capital into Indonesia in the third quarter of 2024 with an investment of US$ 5.5 billion, then there is Hong Kong with US$ 2.24 billion, followed by China with US$ 1.86 billion, then Malaysia is in fourth position with US investment. $990 million and FDI from the United States of US$840 million.
Domestically, investment outside Java contributed IDR 218.78 trillion or the equivalent of 50.70% of the total investment realization in the third quarter of 2024. This amount was greater than investment in Java which was worth IDR 212.70 in the third quarter of 2024, or the equivalent of 49. 30% of total investment realization. (Z-11)
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