Indonesia attracts record high foreign direct investment funds
International Business News – Indonesian Investment Minister Bahlil recently stated that in the second quarter of 2022, Indonesia attracted foreign direct investment (FDI) of 163.2 trillion rupiah (about 10.89 billion US dollars), a year-on-year increase of 39.7%, the highest growth rate in the past decade.
In the second quarter of this year, Indonesia attracted foreign direct investment funds (excluding investment in banking and oil and gas) at a faster pace than the 31.8% growth in the first quarter, Bahlil told a news conference. In the second quarter of this year, Indonesia attracted record foreign direct investment (FDI) funds mainly due to downstream mining and petrochemical projects entering the construction phase.
China, Singapore and Japan were Indonesia’s largest sources of FDI during this period. According to aggregated data, 39.7% was the highest quarterly increase in foreign investment in Indonesia since 2011.
Bahlil confirmed that the Indonesian government will continue to focus on metal processing and the use of renewable energy industries, and reiterated Indonesia’s plan to ban bauxite and tin exports in order to promote investment in domestic processing facilities, citing this as Indonesia’s efforts to restructure foreign investment funds part of the structure.
Previously, Indonesian government’s ban on nickel ore exports helped the country attract a lot of foreign investment, mainly from China, for the production of metals and chemicals extracted from nickel ore and materials used in car batteries.
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