Indonesia's Q3 foreign direct investment value rises 63.6% y/y (2022)

[Indos]

Indonesia's Q3 foreign direct investment value rises 63.6% y/y​

FILE PHOTO: General view of the business district in Jakarta, Indonesia, August 4, 2022. REUTERS/Willy Kurniawan

JAKARTA : Foreign direct investment (FDI) in Indonesia rose 63.6 per cent on a yearly basis in the third quarter in rupiah terms, its investment minister said on Monday, boosted mainly by development of resources processing.

Bahlil Lahadalia said that the trend of investment in the processing industry was due to construction of smelters, part of Indonesia's strategy to give more value to its minerals.

FDI value in Q3 reached 168.9 trillion rupiah ($10.83 billion), Bahlil said, with Singapore, China and Japan the biggest sources.

The data excludes investment in banking and the oil and gas sectors in Indonesia, Southeast Asia's biggest economy.

"I expect that FDI in the next quarter will also grow above 50 per cent as industries will try to finalise investment targets this year in the last quarter," he told a news conference.

Bahlil said he believed the economic slowdown in one of its biggest partners, China, would not affect the flow of investment into Indonesia, due to Beijing's political stability.

Investment from China to Indonesia in the Q3 period reached $1.6 billion, below Singapore at $3.8 billion, according to the ministry's data.

Including domestic sources, total investment during the period surged 42.1 per cent from July-September 2021 to 307.8 trillion rupiah, boosted by rise of investment in manufacturing, transportation and mining sector.

A regulation on incentives for investors in the $32 billion new capital city, called "Nusantara", is expected to be completed this month, Bahlil said.

The regulation is expected to covers a wide range of incentives, such as a 30-year tax break.

Bahlil said several countries, such as China, South Korea and some European nations, have pledged to invest in Nusantara, although he could not provide details on the proposed amount.

($1 = 15,590.0000 rupiah)

Indonesia's Q3 foreign direct investment value rises 63.6% y/y

JAKARTA : Foreign direct investment (FDI) in Indonesia rose 63.6 per cent on a yearly basis in the third quarter in rupiah terms, its investment minister said on Monday, boosted mainly by development of resources processing. Bahlil Lahadalia said that the trend of investment in the processing...

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[Indos]

https://www.imf.org/external/datamapper/profile/IDN

 

[Indos]

AlhamduliLLAH

Indonesia total investment last year is around 80 billion USD. 53 % went to outside Java island. Usually it is 50:50 between domestic and foreign investment. So let say FDI is 40 billion USD in 2022, that is relatively the same like India FDI in 2021.

MSN

www.msn.com

The 2022 FDI is doubling the number in 2021

Indonesia

India

UNCTADstat - General Profile: India

Overview of key economic statistics. The statistical themes covered are: International trade, economic trends, foreign direct investment, external financial resources, population and labor force, information economy and maritime transport.

unctadstat.unctad.org

 

[Indos]

Investment Realization in 2022 Exceeds the Target, Dominated by Foreign Capital​

Story from Tia Dwitiani Komalasari

Batang Industrial Complex, Central Java


Investment realization throughout 2022 reached IDR 1,207 trillion or exceeded the target of IDR 1,200 trillion. As much as 54.2% of the investment realization was foreign investment or FDI.

Based on data from the Investment Coordinating Board or BKPM, the investment achievement increased by 34% compared to 2021. The investment is able to absorb 1.3 million workers.

Head of BKPM/Investment Minister Bahlil Lahadalia said that at first many people did not believe that the investment realization target was achieved. But apparently, the investment target of IDR 1,200 trillion can be exceeded.

"This is the largest investment growth that reached 34%," said Bahlil during a press conference in Jakarta, Tuesday (24/1).

The realization of the investment consists of Domestic Investment or PMDN of Rp 552.8 trillion or 45.8%. That's up 23.6% compared to before.

Meanwhile, the realization of FDI reached Rp 654.4 trillion or 54.2%. Foreign investment increased by 44.2% compared to the previous year.

"We must be grateful that in the midst of global economic darkness, FDI entering Indonesia continues to grow by 44.2%," he said.

Bahlil said that the growth of FDI was the impact of President Joko Widodo's policies. This is proof of investor confidence in Indonesia.

The top five countries that invest in Indonesia are:​

1. Singapore at US$ 13.3 billion

2. China at US$ 8.2 billion

3. Hong Kong for US$ 5.5 billion

4. Japan at US$ 3.6 billion

5. The United States of America at US$ 3.3 billion.

Indonesia's investment realization experienced an increasing trend every year during the 2017-2021 period, with an average increase of 6.9%. Based on BKPM data, the realization of Indonesian investment in 2017 amounted to Rp692.8 trillion.

Then in the following years the value continued to rise as seen on the chart, until it reached IDR 901 trillion in 2021.

Realisasi Investasi 2022 Lampaui Target, Didominasi Modal Asing

 

[Indos]

Indonesia's FDI jumps in 2022, led by mineral processing​

JAKARTA, Jan 24 (Reuters) - Indonesia's foreign direct investment surged 44.2% on a yearly basis in 2022, with the base metal and mining sectors getting the biggest inflows, investment ministry data showed on Tuesday.

Indonesia received 654.4 trillion rupiah worth of FDI last year, or equivalent to $45.6 billion in the ministry's official calculation, which assumes an exchange rate of 14,350 to the dollar.

The data excludes investment in the banking and oil and gas sectors.

The resource-rich country has been trying to capitalise on its abundant nickel reserves to develop battery and electric vehicle industries at home.

Once a major exporter of nickel ore, it stopped outbound shipments of the raw material in 2020 to make sure investors have enough for domestic processing.

FDI in base metal reached $11 billion last year, the biggest recipient of foreign investment. The mining industry came second with $5.1 billion.

The biggest sources were Singapore, China and Hong Kong.

Total investment, including from domestic sources, reached 1,207.2 trillion rupiah ($81.02 billion), the ministry said, roughly in line with the government's target.

FDI in the final quarter of last year was up 43.3% on an annual basis, amounting to 175.2 trillion rupiah in rupiah terms, or $12.2 billion in the official U.S. dollar equivalent.

($1 = 14,900. Rupiah)

(Reporting by Stefanno Sulaiman and Gayatri Suroyo; Editing by Martin Petty)

https://www.nasdaq.com/articles/indonesias-fdi-jumps-in-2022-led-by-mineral-processing

 

[Indos]

Manufacturing industry key to solving electricity oversupply bottleneck

Hot topic: A furnace operates at the nickel-smelting facility belonging to PT VDNI on the Morosi industrial estate in Konawe, Southeast Sulawesi, on Sept. 9. The company processes nickel to produce stainless steel.(Antara/Jojon)


Divya Karyza (The Jakarta Post)
PREMIUM
Jakarta ● Thu, February 16, 2023


Indonesia’s electricity over supply is expected to worsen, unless the government can double its efforts to grow the country’s manufacturing industry, which experts say is the easiest way to tackle the country’s electricity-supply glut.

Currently, state-owned electricity monopoly PLN generates more power than it can sell to consumers, leaving the excess to dissipate.

The largest excess supply occurred in the Java-Bali system, with more than 25,000 gigawatt hours (GWh), followed by the Sumatra system with almost 8,000 GWh in 2023, according to PLN’s long-term power procurement plan (RUPTL). Other regions also suffered similar issues, albeit at a far lesser scale.

Manufacturing industry key to solving electricity oversupply bottleneck

Getting more manufacturing facilities to use electricity generated by the state electricity firm PLN could be the easiest way to tackle the country’s electricity supply glut, energy experts say.

www.thejakartapost.com

 

[Indos]

Largest Pocky factory opens in Indonesia to supply ASEAN, US market

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An aerial view shows the new Pocky factory in Karawang, West Java, which was inaugurated in February 2023.(Glico/-)

Deni Ghifari (The Jakarta Post) Jakarta
● Fri, February 24, 2023

Ezaki Glico Co., Ltd inaugurated its largest factory to date on Thursday in Karawang, West Java, with the aim of serving the domestic and Southeast Asian markets and to begin exports to North America in spring this year.

Operating under PT Glico Manufacturing Indonesia, the factory solely produces Glico’s flagship product, Pocky, which is a chocolate-covered biscuit that comes in several flavors, such as strawberry and matcha.

“Glico focuses on accelerating growth in the Southeast Asian region as well as globally, supported by our best brand, Pocky,” Glico Asia Pacific Pte. Ltd. chief operating officer Hideaki Nagahisa was quoted as saying in a press statement released on Thursday.

Largest Pocky factory opens in Indonesia to supply ASEAN, US market

Ezaki Glico Co., Ltd inaugurated its largest factory to date on Thursday in Karawang, West Java, with the aim of serving the domestic and Southeast Asian markets and to begin exports to North America in spring this year.

www.thejakartapost.com

 

[Indos]

AlhamduliLLAH​

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Indonesia passes jobs decree into law, easing investment uncertainty​

Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto delivers his remarks on the new job and investment law, during the parliamentary plenary meeting, in Jakarta, Indonesia, March 21, 2023. REUTERS/Ajeng Dinar Ulfiana

JAKARTA, March 21 (Reuters) - Indonesia's parliament on Tuesday passed into law an emergency decree on jobs and investment, eliminating legal uncertainty hanging over measures President Joko Widodo has pushed to spur investment in Southeast Asia's largest economy.

The new law replaces the 2020 Jobs Creation law, which was praised by foreign investors for streamlining business rules in the bureaucracy-heavy country, but also criticised by labour and green groups as being too pro-business.

In 2021, the Constitutional Court ruled the passage of that law was flawed due to inadequate public consultation and ordered a renewed debate process in parliament within two years.

Tuesday's passage of the decree meant most of the changes brought about by the law would stay, with some small changes on labour rules.

Indonesia's Chamber of Commerce and Industry deputy chair Shinta Kamdani said the passage provided clarity and certainty that were crucial for existing and potential investors after the 2021 court order raised concerns.

"Despite some notes on provisions on employment, at least the passage provides a guaranteed legal certainty for schemes and easing of investment rules that have been underway so far," Kamdani said.

The Labour Party, which currently has no seat in parliament but plans to contest the 2024 elections, opposed the passage, with some 300 members rallying to protest the new law near the manpower ministry office.

The party will challenge the law to the Constitutional Court soon, its chairman Said Iqbal told a news conference, while calling for Indonesian workers to stage a strike that would be as big as French protests against pension changes after the Eid al-Fitr celebrations in April.

"We will stop production, we will prepare to strike for five days like in France," he said.

POLITICAL RUCTIONS​

Officials have credited a 44% rise in foreign direct investment last year in part to the 2020 jobs law, saying business expansion would boost employment in the world's fourth most populous country, where over half of workers are in the informal sector.

Chief economic minister Airlangga Hartarto said the new law removed a legal vacuum and was necessary for the country amid global challenges ranging from slowing growth, climate change, the war in Ukraine to recent problems affecting some U.S. banks.

"The job creation decree is a measure to mitigate global crises ... (It) prevents problems from spreading and global vulnerabilities affecting the national economy," Airlangga told parliament after the passage.

However, opposition lawmakers said there was no emergency that gave a legal basis for the president to issue a decree to override the court's ruling.

"We view that the decree does not solve legal and economic uncertainties in Indonesia. We should not solve problems with more problems," Hinca Pandjaitan, a parliamentarian from the Democratic Party said, adding that workers are still unhappy about the minimum wage and outsourcing.

Two out of nine parties in parliament opposed the decree during the plenary session, with members of the opposition Islamist party, the Prosperous Justice Party, walking out before speaker Puan Maharani announced the vote had been passed.

Reporting by Stefanno Sulaiman; Additional reporting by Stanley Widianto; Writing by Gayatri Suroyo; Editing by Ed Davies and Sonali Paul

Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto attends a photo session with House Speaker Puan Maharani after delivering his remarks on the new job and investment law, during the parliamentary plenary meeting, in Jakarta, Indonesia, March 21, 2023. REUTERS/Ajeng Dinar Ulfiana

Indonesia passes jobs decree into law, easing investment uncertainty

Indonesia's parliament on Tuesday passed into law an emergency decree on jobs and investment, eliminating legal uncertainty hanging over measures President Joko Widodo has pushed to spur investment in Southeast Asia's largest economy.

www.reuters.com