Indonesia FDI accelerates to a new record high in Q2

Sunday, 2022-07-24 21:32:52
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Foreign direct investment (FDI) into Indonesia rose 39.7% annually in the second quarter of this year to 163.2 trillion rupiah (10.89 billion USD). (Photo: jakartaglobe.id)
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NDO/VNA – Foreign direct investment (FDI) into Indonesia rose 39.7% annually in the second quarter of this year to 163.2 trillion rupiah (10.89 billion USD), the biggest climb in the past decade.

According to investment minister Bahlil Lahadalia, the FDI, which excludes investment in banking and the oil and gas sectors, accelerated from a 31.8% increase in the January-March period.

The growth was mostly supported downstream industry development in mining and petrochemical sectors that have entered the construction phase, he said.

Singapore, China and Japan were Indonesia's top sources of foreign investment for the period. The 39.7% rise was the biggest increase for any quarter since 2011, according to Eikon Refinitiv's records.

The government will continue to focus on the metal processing sector and industries that uses renewable energy, Bahlil affirmed.

He reiterated that the government plans to ban exports of bauxite and tin to promote investment into their processing facilities onshore, part of a "reform" of foreign investment into Indonesia.

Its export ban of nickel ore had successfully attracted major investment, mostly from China, to produce metal and chemicals used in electric car batteries extracted from nickel ore.