The Indonesian Ministry of Investment reported that investment realization from January to September 2024 surged by 19.78% year-on-year to Rp 1,261 trillion (approximately US$81 billion), with foreign direct investment (FDI) leading.

With three months remaining, the government aims to reach its annual target of Rp 1,650 trillion, requiring an additional Rp 389 trillion in investments by year-end, coinciding with the leadership transition to President-elect Prabowo Subianto. 

The Ministry's data shows that investment in the third quarter alone amounted to Rp 431.48 trillion, creating 650,172 jobs. In total, 1.87 million jobs have been generated during the first nine months of the year. 

Investment outside Java accounted for 50.4% of the total. However, Jakarta led the country in attracting investment during the January-September period with Rp 191.78 trillion, followed by West Java (Rp 184.9 trillion), East Java (Rp 111.44 trillion), Central Sulawesi (Rp 98.6 trillion), and Banten (Rp 83.44 trillion). 

The Basic Metals, Metal Products, Non-Machinery, and Equipment sector attracted the largest investments, totaling Rp 178.04 trillion, contributing 14.11% to the overall figure. This sector also secured the most FDI, accounting for 23.35% of foreign investments, with $10.18 billion invested. Meanwhile, domestic investors primarily favored the Transportation, Warehousing, and Telecommunications sector, which attracted Rp 87.59 trillion, or 14.43% of total domestic investments. 

Singapore remained the top source of foreign investment, contributing $14.35 billion from January to September. Hong Kong overtook China in the third quarter to become the second-largest investor, with $6.06 billion. Additionally, Malaysia outpaced Japan, becoming the fifth-largest investor with $2.72 billion, up from Japan’s earlier position of $1.8 billion during the first half of 2024. 

The government projects that the total investment during President Joko Widodo’s second term will reach Rp 5,823.1 trillion, a 76.76% increase compared to the Rp 3,294.3 trillion realized during his first term.

This article is published in partnership with Katadata

Original article here