Foreign Investment in Indonesia Accounts for 68 Percent of Total

Construction Steel

Indonesia’s transport, telecommunications and mining sectors have been enjoying an accelerated Q2 this year as foreign direct investment surged upwards.

Not counting banking and oil and gas sectors, overall FDI into Southeast Asia’s largest economy rose 18 percent to Rp 92.2 trillion ($6.8 billion) when compared to the same period last year according to the Investment Coordinating Agency.

Of the countries pumping the most money into the Indonesian economy, Malaysia led the pack, followed by Singapore, Japan , the United States, and the British Virgin Islands.


This exceeds the 14 percent rise that was recorded by the agency for the previous three months.

“Investment has kept on going despite economic slowdown,” said Franky Sibarani, BKPM chief at a press conference on Monday.

68 percent of the country’s total investment, which was up 16 percent for the quarter, originated from overseas investors, while local investments saw a 12 percent rise according to KPM data

Who are Indonesia’s Biggest Investors?

Of the countries pumping the most money into the Indonesian economy, Malaysia led the pack, investing $2.3 billion, followed by Singapore ($1.1 billion), Japan ($400 million), the United States ($300 million) and the British Virgin Islands ($200 million).


$2.2 billion of the total went to transport, storage and telecommunications, followed by construction ($600 million), and mineral mining ($500 million).

The BKPM estimates that investment in the second quarter created 370,945 new jobs –crediting 60 percent of those created to have been generated by foreign investment in the country.

“We had big investment in telecommunication [industry]. XL Axiata changed their technology from 3G to 4G, hence the new investment for new equipments,” said Azhar Lubis, the BKPM’s deputy chairman for investment realization supervision.

David Sumual, Bank Central Asia’s top economist in Jakarta, told Reuters:

“This looks like investment has actually risen, which is good because going forward, the only source of economic growth would be investment and government spending.”





The Staff

The Staff

Gettin' it done, when the done needs gettin'.

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