In the first quarter of 2024 (January-March), Indonesia saw investments totaling IDR 401.5 trillion, creating job opportunities for 547,419 people. Foreign direct investment (FDI) was a significant driver, contributing IDR 204.4 trillion, marking a notable 15.5% increase compared to the same period last year. Leading the FDI contributions were Singapore with US$4.2 billion, followed by Hong Kong and China with US$1.9 billion each, the United States with US$1.1 billion, and Japan with US$1.0 billion. Domestic direct investment (DDI) also saw a substantial rise, reaching IDR 197.1 trillion from IDR 151.9 trillion.
Also read: Where to Invest in Indonesia: 7 Best Cities and Locations
Investment distribution between Java Island and other regions was nearly equal, with Java contributing IDR 200.5 trillion (49.9%) and non-Java regions contributing IDR 201.0 trillion (50.1%). Both Java and non-Java regions experienced significant increases in investment compared to the previous year, with growth rates of 28.5% and 16.3%, respectively. Central Sulawesi province ranked fourth among top contributors, generating IDR 27.0 trillion, while West Java and DKI Jakarta remained in the top spots with IDR 64.7 trillion and IDR 58.4 trillion, respectively.
In terms of sectors, manufacturing led with IDR 48.1 trillion, particularly in basic metals and related products. Transportation, warehousing, and telecommunications followed closely with IDR 48.0 trillion, with mining at IDR 42.3 trillion, and housing, industrial, and office areas at IDR 29.4 trillion. The food industries sector attracted IDR 29.0 trillion. Manufacturing alone absorbed over 40% of total investments during the quarter.
Also read: What to Invest in Indonesia: 7 Best Sectors for Foreigner
To achieve the 2024 investment target of IDR 1,650 trillion set by the President, the Indonesian government, through the Ministry of Investment/Investment Coordinating Board (BKPM), is implementing measures to accelerate investment. The Investment Acceleration Task Force will focus on facilitating strategic investment plans and overcoming obstacles to ensure economic growth surpasses 5%.
Also read: Indonesia Negative Investment List (DNI): Latest Update
After learning this data, are you interested in investing in Indonesia? If so, InvestinAsia can assist you.
InvestinAsia specializes in helping with company registration in Indonesia. Our team of experienced experts can assist you with:
- Foreign company / PMA registration in Indonesia
- Indonesia representative office registration
- PT PMDN Set Up
- Virtual office setup in Indonesia
- Business registration number in Indonesia
- Indonesia Business Licenses
- Indonesia Trademark Registration
- Franchise License in Indonesia
If you are interested in starting a business in Indonesia, you can start by contacting us for FREE consultation.
data source: https://invest.jakarta.go.id/
Also check: Jakarta Investment Realization Q1 (Jan – Mar) 2024
