Metal Industry Leads as Top Destination for Foreign Investment in 2023 

24 Jan 2024


In 2023, Indonesia witnessed a significant influx of foreign capital, predominantly channeled into the country’s base metal, metal goods, non-metal, and equipment industries.  


At a press conference held in Jakarta on Wednesday, January 24, 2024, Bahlil Lahadalia, the Indonesian Minister of Investment and Head of the Investment Coordinating Board (BKPM), said Indonesia accumulated Rp 1,418.9 trillion (roughly US$90.2 billon) throughout 2023, surpassing the ministry’s target of Rp 1,400 trillion.  


The investment realization comprised of Rp 744 trillion in foreign investments, or 52.4% of the total, which amounted to a 13.7% year-on-year growth. Meanwhile domestic investments stood at Rp 674.9 trillion, which accounted for 47.6% of the overall investment realization figure, or a 22.1% growth compared to the previous year. 


Sector-wise, the highest investment realization was in the basic metal, metal goods, non-metal, and equipment industry, with $11.8 billion. The second highest was in the transportation, warehousing, and telecommunications sector at $5.6 billion, followed by the chemical and pharmaceutical industry at $4.8 billion. The mining sector, as well as paper and printing, saw the fourth and fifth largest investment realizations with $4.7 billion and $3.4 billion, respectively. 


The ministry’s data exclude investments in the financial and oil and gas sectors and are tallied in rupiah terms. 


Geographically, West Java emerged as the top destination for foreign investors, drawing in $8.3 billion. Central Sulawesi followed with $7.2 billion, North Maluku with $5 billion, DKI Jakarta with $4.8 billion, and East Java with $4.7 billion, make up the rest of the top five. Meanwhile, Java Island as a whole recorded the highest investment realization at $23.91 billion. 


In terms of investor origin, Singapore led with $15.4 billion, followed by China at $7.4 billion. Hong Kong secured the third spot with $6.5 billion, while Japan and Malaysia rounded out the top five, contributing $4.6 billion and $4.1 billion, respectively.