Under the new law number 2 of 2024, Jakarta is no longer the capital city of Indonesia. However, the city continues to thrive as an investment hub. In the first quarter (Q1) of 2024 (January-March), Jakarta achieved an investment realization of IDR 58 trillion, making it the second highest in the country with a 14.5% contribution. This demonstrates strong investor confidence in Jakarta’s growth and its mission to become a global city.
The investment realization in Q1 2024 marked a significant 60.2% increase compared to the same period last year. Domestic direct investment (DDI) played a key role, amounting to IDR 35.3 trillion, an 86% rise from Q1 2023. Foreign direct investment (FDI) also saw a 28% increase, reaching US$ 1.54 million. This upward trend underscores Jakarta’s attractiveness as a destination for both local and international investors.
Also read: Why Do Business in Jakarta: 9 Great Advantages
South Jakarta emerged as the top area for investment, with IDR 24.3 trillion, accounting for 41.6% of the city’s total investment. In terms of DDI, Central Jakarta led with IDR 12 trillion, or 20.6% of the total DDI in the city. For FDI, South Jakarta was the leader, with IDR 14 trillion, representing 24.8% of the total FDI in Jakarta. Overall, investment realization increased across all regions of Jakarta in Q1 2024 compared to the same period last year, for both DDI and FDI.
Sector-wise, the transportation, warehouse, and telecommunication sectors attracted the most investment, contributing IDR 19.6 trillion, or 33.6% of the total investment in Q1 2024. The other services sector followed, contributing IDR 10.6 trillion, or 18.3%. The trade and reparation sector ranked third, contributing IDR 8.3 trillion, or 14.3%. Together, these top three sectors accounted for IDR 38.6 trillion, or 66.2% of the total investment in Jakarta during this period.
Also read: Top 20 Business Opportunities in Jakarta for 2024
In conclusion, despite no longer being Indonesia’s capital, Jakarta has shown robust economic growth with a 60.2% increase in investments from the same period last year. The largest contributors to this growth were the transportation, warehouse, telecommunication, services, and trade and reparation sectors, which together accounted for 66.2% of the total investment. These achievements in Q1 2024 position Jakarta to take on a new role as the National Center of Economic and Global City, serving as a hub for trade, services, financial services, and business activities both nationally and globally.
Also read: Indonesia Investment Realization Q1 (January – March) 2024
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data source: https://invest.jakarta.go.id/
