Indonesia's FDI at USD 55.3 Bn in 2024

Indonesia's foreign direct investment last year was 900.2 trillion rupiah (USD 55.33 billion), up 21% on a yearly basis, the investment ministry said on Friday.

FDI in the fourth quarter was 245.8 trillion rupiah, a 33.3% increase from the same period a year earlier, versus the third quarter's growth of 18.6%. The data excludes investment in the financial and oil and gas sectors.

Southeast Asia's largest economy has seen its FDI rising, especially in the mining and metal refining sectors, after Jakarta banned the exports of nickel ore back in 2020 with a goal to develop its nickel processing industry.

In the October-December quarter, the base metal sector received USD 3.4 billion of investment, the paper industry received USD 2.1 billion and mining recorded USD 1.3 billion of investment.

Singapore, China and Hong Kong were the biggest sources of FDI in the fourth quarter of 2024.

Total direct investment in 2024, including from domestic sources, reached 1,714.2 trillion rupiah (USD 105.13 billion), up 20.8% on an annual basis, the data showed.

Source: Reuters

Indonesia, India Ink Six MoUs to Boost Trade, Investment

The CEO Forum held during the President's New Delhi visit produced several partnerships between Indonesian and Indian businesses across a variety of sectors, including pharmaceuticals and communications technology, to kick off new momentum in bilateral relations.

Indonesia and India have signed six memorandums of understanding (MoUs) during President Prabowo Subianto’s state visit to New Delhi last weekend, the first since he took office, with a view to strengthening economic ties through a focus on digital technology, health care and clean energy.

Indonesian Chamber of Commerce and Industry (Kadin) chairman Anindya Bakrie said the CEO Forum, held during the President’s visit, pushed for stronger trade and investment links and urged both governments to prioritize economic partnerships.

The forum saw at least 25 Indonesian CEOs meet with 75 Indian business leaders at the Taj Mahal hotel in New Delhi to explore partnership opportunities.

“The current focus is on food and agriculture. Indonesia is deeply committed to partnering for food security and manufacturing, collaborating for mutual growth,” Anindya said on Wednesday in a statement, as quoted by state-owned news agency Antara.

The Kadin chair added that the two nations had agreed to collaborate in food security, agriculture, clean energy, technology and human capital development, which aligns with India’s ambition to become the world’s third-largest economy and Indonesia’s goal to rank seventh by 2030.

“We are doing a lot in trade and investment but there’s still more we can achieve, especially in pharmaceuticals, health care and the transition to clean energy, which we take very seriously,” added Anindya, who co-led the Indonesian delegation with Kadin advisory board chair Hashim Djojohadikusumo, Prabowo’s brother.

The CEO Forum resulted in partnerships between Indosat Ooredoo Hutchison and AIon OS India as well as the Wadhwani Operating Foundation on artificial intelligence and digital talent, while Indonesia’s Mayapada Healthcare Group teamed up with India’s Apollo Hospitals on hospital management on Batam Island, digital diagnostics and workforce training.

Nodeflux and XDXLink agreed to cooperate in satellite technology, AI, disaster management and sustainability, while Biotis and Biological E signed a deal on vaccine production and technology transfer.

According to Anindya, the CEO Forum will be held regularly to sustain the momentum in Indonesia-India economic engagement.

Trade between the two countries reached USD 29.4 billion in 2024, when Indonesia was India’s eighth-largest trading partner and India was the second-largest buyer of Indonesia’s coal and crude palm oil.

India recorded a USD 1.46 billion trade deficit with Indonesia in October.

Anindya and Confederation of Indian Industry (CII) chairman Ajay Shriram handed over the signed MoUs on Saturday, prior to Prabowo and Prime Minister Narendra Modi addressing a joint press briefing at Hyderabad House.

“Indonesia is open to investment, and we invite India to take part in our infrastructure programs across all sectors. We are making progress across the board,” Prabowo said in his remarks, live streamed on the Presidential Secretariat’s YouTube channel.

The President also directed his administration to cut red tape and fast-track implementation to ease the entry of Indian investors and investments to Indonesia, and reaffirmed Jakarta’s commitment to stronger ties with New Delhi.

During his two-day state visit to India, which concluded on Monday, Prabowo held bilateral talks with Modi and attended the country’s 76th Republic Day parade as chief guest.

Source: The Jakarta Post

Indonesia, Malaysia to Strengthen Cooperation in Palm Oil Sector: Prabowo

Indonesia and Malaysia, which together account for around 80 percent of the world's palm oil production, agreed to enhance their cooperation within the industry, President Prabowo Subianto stated.

“We have agreed to increase cooperation in all areas, considering that we are also the largest producers of palm oil (globally),” the president remarked during a joint press statement with Malaysian Prime Minister Anwar Ibrahim in Kuala Lumpur on Monday (Jan 27).

Prabowo underscored the significance of palm oil as a crucial commodity, which is in high demand from countries such as Egypt, India, and Pakistan.

Hence, he expressed gratitude for Malaysia's support of Indonesia, as a fellow palm oil producer, in countering negative campaigns and discrimination against palm oil at the global level.

"I think we can do a lot of good (things), and thank you for the continued support from Malaysia on this issue,” Prabowo concluded.

Recently, Indonesia and Malaysia won a lawsuit against the European Union (EU) regarding palm oil-based biofuel at the World Trade Organization (WTO).

The WTO ruled that the EU has discriminated against Indonesian palm oil-based biofuel, giving it unfair and detrimental treatment, in setting biofuel regulations.

Indonesia brought the case to the WTO dispute body in 2019 after the EU decided to exclude palm oil from its biofuel classification due to its link to deforestation, with plans to phase out its use in transport fuels between 2023 and 2030.

Subsequently, the WTO panel issued a report stating that certain elements of the EU's policy were inconsistent with the WTO rules.

“Now the world has no choice but to accept that biodiesel does not only come from rapeseed or soybean but there is biodiesel that is based on crude palm oil,” Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto stated following the WTO ruling.

Source: Antaranews