Entering a Heavy Year, Investment in the First Quarter of 2023 Reaches 23.5 Percent of Target

Armfalcon.com, JAKARTA — The Ministry of Investment or the Investment Coordinating Board (BKPM) noted that investment realization in the first quarter of 2023 reached IDR 328.9 trillion, growing 16.5 percent compared to the achievement in the same period in the previous year (yoy) of IDR 282.4 trillion.

Minister of Investment or Head of BKPM Bahlil Lahadalia in a press conference in Jakarta, Friday, said investment realization achievements in that period also recorded growth of 4.5 percent compared to the previous quarter (qoq) of IDR 314.8 trillion, although he admitted that 2023 was a tough year .

“Realized investment in the first quarter of 2023 amounted to IDR 328.9 trillion or 23.5 percent of the investment target of IDR 1,400 trillion,” he said in a presentation in Jakarta, Friday (28/4/2023).

In detail, the realization of Foreign Investment (PMA) during January-March 2023 reached IDR 177.0 trillion or 53.8 percent of the total investment realization. This number grew 20.2 percent compared to the same period the previous year.

Meanwhile, the realization of Domestic Investment (PMDN) reached IDR 151.9 trillion or 46.2 percent, growing 12.4 percent on an annual basis (yoy).

“Even though there is more FDI, it does not mean that PMDN is not growing, PMDN is growing, it’s just that the growth is not as big as FDI on an annual basis, but in qoq terms, the growth of PMDN is higher than FDI,” he explained.

In the records of the Ministry of Investment, FDI realization grew 20.2 percent on an annual basis (yoy) although it only grew 1.1 percent on a quarterly basis (qoq). Meanwhile, PMDN realization grew 12.4 percent yoy and 8.8 percent qoq.

The Ministry of Investment noted that investment throughout the first three months of 2023 was spread across West Java province, followed by the Special Capital Region (DKI) of Jakarta, East Java, Central Sulawesi and Banten.

Meanwhile, based on the business sector, in the first quarter of 2023, the top five realized investments came from the basic metal, metal goods, non-machinery and equipment industrial sectors; transportation, warehouse and telecommunication sectors; mining sector; housing, industrial and office areas; as well as the chemical and pharmaceutical industry sectors.

Overall, the manufacturing sector contributed 42.5 percent of the total investment realization in the first quarter of 2023.

Meanwhile based on country of origin, investment realization in the first quarter of 2023 is dominated by Singapore; followed by Hong Kong, PRC; then the People’s Republic of China (PRC); Japan; and the United States.

Investment realization in the first quarter of 2023 of IDR 328.9 trillion has reached 23.5 percent of the 2023 investment realization target of IDR 1,400 trillion and has succeeded in absorbing 384,892 Indonesian workers.

source : Between