Ministry of Investment/Investment Coordinating Board Optimistic to Pursue the Target of 1.200 trillion in 2022

The Minister of Investment/Head of the Investment Coordinating Board (BKPM) Mr. Bahlil Lahadalia announced the achievement of investment realization data for the fourth quarter (October-December) in 2021 as well as cumulative investment realization data for 2021 in a press conference which was held virtually on January 27, 2022. Investment realization achievements for the period October – December (Quarter IV) 2021 reached IDR 241,6 trillion with the absorption of Indonesian Employees (TKI) as many as 295.491 persons.

Cumulatively, the investment realization during the period January to December 2021 reached IDR. 901,02 trillion. This achievement exceeds 100,1% of the target specifically given by the President of the Republic of Indonesia, Mr. Joko Widodo, which is IDR. 900 trillion, and reached 104,8% of the target in the National Medium-Term Development Plan (IDRJMN) of IDR. 858,5 trillion. New works created from the realization of this investment are 1.207.893 Indonesian Employees (TKI).

Total investment realization in the 4th quarter of 2021 consisted of Foreign Investment (PMA) of IDR 122.3 trillion (50,6%) and Domestic Investment (PMDN) of IDR 119.3 trillion (49,4%). Foreign Investment realization growth in the 4th quarter of 2021 increased significantly. Compared to the 3rd quarter of 2021, the increase in this quarter was 18,5% (q-o-q) and when compared to the 4th quarter of 2020, the increase was bigger by 10,1% (y-o-y). On the other hand, the realization of domestic investment in the same period grew by 5,1% (q-o-q) only, however compared to the 4th quarter of 2020, it grew rapidly by 15,2% (y-o-y).

The contribution of Foreign Investment (PMA) and Domestic Investment (PMDN) in the percentage of investment realization achievement both in the 4th quarter of 2021 or as a whole in 2021 is still balanced. This shows that the contribution of both foreign and domestic investment continues to grow in Indonesia and is accompanied by the ability of domestic investors to continue to grow.

Mr. Bahlil reveals that the global economic situation is starting to recover, the Foreign Investment is able to grow 10% compared to 2020. This is the result of the hard works of the Ministry of Investment and DPMPTSP (Investment Service and One Stop Services) team throughout Indonesia.

Based on the distribution of regions, the realization of investment in the 4th quarter of 2021 outside Java is still higher than in Java. Investment outside Java was recorded at IDR 127,5 trillion (52,8%), while in Java it was IDR 114,1 trillion (47,2%).

Mr. Bahlil continued his statement that the strengthening contribution of investment outside Java is the impact of the success of the Government’s Program through the massive development of infrastructure projects in the government of Mr. Joko Widodo in the first period. This also reflects that outside Java is already investment friendly.

The Province of the Special Capital City Region (DKI) Jakarta excels as a prima donna for investors to carry out their investments, with a total investment realization of IDR 3,8 trillion (12.7%). Meanwhile, outside Java, the provinces of East Kalimantan and North Maluku are listed in the top 5 investment destination locations in the 4th quarter of 2021.

Investment realization in the 4th quarter of 2021 by sector is dominated by investment in the Basic Metals, Metals, Non-Machinery and Equipment Industries amounting to IDR 34,8 trillion (14,4%). Followed by the Housing, Industrial Estate and Offices sector with IDR 28,6 trillion (11,8%) and Mining with IDR 28,0 trillion (11,6%).

This means that current investment has encouraged industrial development. Because the government is also pushing in the manufacturing sector to get added value.

Source: www.sonora.id

Disclaimer:

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. In addition, laws and regulations in Indonesia are often subject to change. Please contact us as your consultant to get an up to date information and accurate advice. For more information click here and you can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.