Investment realization in 2022 first quarter highest in past decade

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Investment realization in the first quarter of 2022 was the highest in the last 10 years, as it reached Rp282.4 trillion (US$19.49 billion), increasing by 28.5 percent year-on-year, according to the Investment Ministry.

The figure also grew by 16.9 percent as compared to the realization of Rp241.6 trillion (US$16.68 billion) during the period from October to December 2021.

“It shows that the government has made the right attempts in formulating the investment policies. The policies have encouraged certainty for the investors to invest (in Indonesia),” Investment Minister Bahlil Lahadalia remarked during an online presentation on investment realization here on Wednesday.

The realization of foreign investment (PMA) during the January-March 2022 period had reached Rp147.2 trillion (US$10.16 billion), growing by 31.8 percent as compared to the corresponding period in 2021.

Meanwhile, the realization of domestic investment (PMDN) had reached Rp135.2 trillion (US$9.33 billion), rising 25.1 percent year-on-year.

Hence, the realization of investment in the first quarter of 2022 had reached 23.5 percent of President Joko Widodo’s target of Rp1,200 trillion (US$82.8 billion).

“The investors are starting to become confident in the stability of the government’s policies to encourage the realization of investment in Indonesia. Furthermore, the number of PMDN also increased. It is in accordance with our expectations to realize quality investment,” the minister stated.

Investment realization in the first quarter of 2022 was observed in several provinces, comprising Jakarta, West Java, Riau, East Java, and Central Sulawesi.

It was dominated by investment in basic metal, metal, and non-machinery goods and their equipment; transportation; warehouse and telecommunications; as well as mining industries.

In addition, most of the investment was realized in housing; industrial and office areas; as well as electricity, water, and gas sectors.

Lahadalia noted that the realization of investment in metal, metal, and non-machinery goods and their equipment manufacturing had become the main investment attraction since 2021.

“Our industry downstreaming program has been truly running. We will never be affected by any intervention from any country (which attempts) to hamper our downstreaming program,” he emphasized.

Most of the investment comes from Singapore, Hong Kong, China, Japan, and the United States.

Source: Antara News