Jakarta Globe is reporting that Investment Minister, Bahlil Lahadalia has said that Indonesia aims to source over half of the country’s annual investment target from foreign investors again in 2024.
In 2023, Indonesia secured IDR 1,418 trillion (approximately USD 90.3 billion) in combined foreign and domestic investments. About 52.4 percent came from foreign direct investment (FDI). For 2024, the overall investment target has risen to IDR 1,650 trillion, the minister said.
“We must keep FDI’s share at a minimum of 52 percent [of the combined investments] even if the global economy has not fully recovered. We are aware that the geopolitical situation is still unstable, especially with the Middle East tension. The Ukraine-Russia [war] has not shown signs of improving,” Bahlil told reporters in Jakarta, adding that “many countries slipping into recession are set to become a roadblock [for us].”
Last month, Indonesians voted to pick the successor to the incumbent President Jokowi. Latest tallies show that Defense Minister Prabowo Subianto is the most likely to succeed Jokowi, although the General Election Commission (KPU) will announce the official vote-counting results by Wednesday (20/3/24) according to Jakarta Globe.
Foreign investors typically put the brakes on their investment as they prefer to see how the new president will govern first, However, Bahlil claimed that foreign investors were pretty much still interested in investing, “I think global [investors] still trust us. Several companies that were in wait-and-see mode have said they would execute their investment plans. Some are even planning to hold the groundbreaking ceremonies,” Bahlil said.
Jakarta Globe report that Singapore was Indonesia’s largest foreign investor in 2023, with investments amounting to USD 15.4 billion. In second place was China with USD 7.4 billion worth of FDI. Followed by Hong Kong (USD 6.5 billion), Japan (USD 4.6 billion), and Malaysia (USD 4.1 billion).
Source: Jakarta Globe
